Montana Administrative Code

2.59.1727 MORTGAGE LOAN ORIGINATOR LICENSING EXAM RETAKES (REPEALED) Authorizing statute(s): 32-9-130, MCA Implementing statute(s): 32-9-110, MCA History: NEW, 2010 MAR p. 1480, Eff. 6/25/10; AMD, 2012 MAR p. 1762, Eff. 9/7/12; REP, 2013 MAR p. 2417, Eff. 12/27/13.

2.59.1728 ADOPTION OF STANDARDIZED FORMS AND PROCEDURES OF THE NMLS (REPEALED) Authorizing statute(s): 32-9-130, MCA Implementing statute(s): 32-9-105, 32-9-110, 32-9-112, 32-9-130, 32-9-134, MCA History: NEW, 2010 p.1480, Eff. 6/25/10; AMD, 2013 MAR p. 48, Eff. 1/18/13; AMD, 201…

2.59.1729 TRANSITION AND INITIAL LICENSE APPLICATION THROUGH NMLS – LICENSE RENEWALS – FEES (REPEALED) Authorizing statute(s): 32-9-117, 32-9-130, MCA Implementing statute(s): 32-9-117, MCA History: NEW, 2010 MAR p. 1480, Eff. 6/25/10; REP, 2010 MAR p. 2956, Eff. 12/24/10.

2.59.1730 CONFIDENTIALITY – AGREEMENTS AND SHARING ARRANGEMENTS In addition to the trade associations specifically named in 32-9-160(3), MCA, the department may enter into agreements or sharing arrangements allowing the sharing of information and material with the following gover…

2.59.1731 REINSTATEMENT OF EXPIRED OR SUSPENDED LICENSES Upon expiration of a license under 32-9-134, MCA, due to nonrenewal by the renewal date, the licensee shall immediately cease from engaging in the activities for which the license was issued. Except as provided in (3), the …

2.59.1732 MORTGAGE CALL REPORTS (REPEALED) Authorizing statute(s): 32-9-130, MCA Implementing statute(s): 32-9-151, MCA History: NEW, 2010 MAR p. 1480, Eff. 6/25/10; REP, 2012 MAR p. 1762, Eff. 9/7/12.

2.59.1733 EXPUNGEMENT OF FELONY RECORD An individual is ineligible for a mortgage loan originator license or license renewal, even if the record of the individual's felony conviction of the type referred to in 32-9-120, MCA, has been expunged. Ineligibility for licensure is trigg…

2.59.1734 AVAILABILITY OF EXEMPTIONS TO ENTITIES AND INDIVIDUALS The exemptions in 32-9-104, MCA, addressing entities are available and apply only to business organizations, including sole proprietorships. An individual is not an entity for purposes of 32-9-104, MCA. Authorizing …

2.59.1735 DETERMINING THE AMOUNT OF SURETY BOND FOR A NEW MORTGAGE BROKER OR MORTGAGE LENDER An entity applying for a license as a mortgage broker or mortgage lender for the first time in Montana shall submit with its application the total combined annual loan production volume f…

2.59.1736 DEADLINE FOR CONDITIONALLY LICENSED MORTGAGE LOAN ORIGINATORS TO COMPLETE THE MONTANA EXAM (REPEALED) Authorizing statute(s): 32-9-130, MCA Implementing statute(s): 32-9-114, MCA History: NEW, 2010 MAR p. 2956, Eff. 12/24/10; REP, 2012 MAR p. 1762, Eff. 9/7/12.

2.59.1737 MONTANA MORTGAGE LOAN ORIGINATION DISCLOSURE FORM Licensees shall use a form that is substantially similar to the Mortgage Loan Origination Disclosure form dated September 23, 2011, which is available on the department'swebsite at banking.mt.gov . Licenseesmay customize…

2.59.1738 RENEWAL FEES Licenses issued under Title 32, chapter 9, part 1, MCA, expire December 31. Licensees shall submit their renewal applications by December 1 of each year to ensure issuance of the license to qualified renewal applicants by January 1 of the following year. Th…

2.59.1739 APPLICATION OF FINANCIAL STANDARDS Section 32-9-120(1)(c) and 32-9-113, MCA, require mortgage loan originators, as well as ultimate equity owners and control persons of entities, to meet financial responsibility standards. These persons are referenced in ARM 2.59.1739 t…

2.59.1740 STANDARDS FOR DETERMINING FINANCIAL RESPONSIBILITY The department shall find an individual lacks the required financial responsibility if a pattern of disregard is shown regarding the management of the individual's personal financial affairs. In determining whether an i…

2.59.1741 PROCEDURES FOR DETERMINING FINANCIAL RESPONSIBILITY If an individual's credit report or response to any application disclosure question contains adverse information, the department shall: notify the individual in writing of the specific items that must be addressed; and…

2.59.1742 REVIEWING ADVERSE CREDIT HISTORY AND OTHER INFORMATION In making a determination whether an applicant has demonstrated financial responsibility, character, and general fitness, the department shall consider the following: the individual's credit history reflected in a c…

2.59.1743 REPORTING FORMS FOR MORTGAGE SERVICERS A mortgage servicer licensee shall compile and submit a report to the department 45 days after the end of each quarter. The quarter end dates are March 31, June 30, September 30, and December 31. At the servicer's election, each se…

2.59.1744 RECORDS TO BE MAINTAINED BY MORTGAGE SERVICERS A mortgage servicer shall create and retain a file for each Montana residential mortgage loan which it services. The file must contain, if applicable: the borrower (or borrowers) name(s); a copy of the original note and dee…

2.59.1745 DEADLINE FOR RENEWAL APPLICATIONS Applications for renewal of licenses may be submitted to the department through the NMLS during the annual renewal period from November 1 to December 31. The department shall process all completed renewal applications submitted to it in…

2.59.1746 RECORD MAINTENANCE, STORAGE, TRANSFER, AND DESTRUCTION Records may be maintained electronically if the storage system complies with the Fair and Accurate Credit Transactions Act of 2003 (15 USC 1681 et seq.), the Gramm-Leach-Bliley Act (15 USC 6801 et seq.), and the reg…

2.59.1747 RESPONSIBLE PARTY FOR RECORDS If a licensed entity is actively engaged in the business of residential mortgage loans, the entity's designated manager is responsible for proper retention, maintenance, safeguarding, and disposal of records for the whole entity. The design…

2.59.1748 MONTANA-SPECIFIC ESCROW FUND A mortgage servicer or lender shall: establish an escrow fund specifically for Montana residential mortgage loans being serviced. The escrow fund must contain only money related to Montana residential mortgage loans; or elect to provide to t…

2.59.1749 WRITTEN EXEMPTION FORM FOR REQUESTING A MORTGAGE LICENSING EXEMPTION (REPEALED) Authorizing statute(s): 32-9-130, MCA Implementing statute(s): 32-9-104, MCA History: NEW, 2013 MAR p. 48, Eff. 1/18/13; REP, 2013 MAR p. 2417, Eff. 12/27/13.

2.59.1750 CLARIFICATION OF DEFINITION (REPEALED) Authorizing statute(s): 32-9-130, MCA Implementing statute(s): 32-9-103(26), MCA History: NEW, 2013 MAR p. 2417, Eff. 12/27/13; REP, 2017 MAR p. 1049, Eff. 7/8/17.

2.59.1751 CERTIFICATE OF BONA FIDE NOT-FOR-PROFIT ENTITY A bona fide not-for-profit entity shall certify that it meets the exemption in 32-9-104(1)(f), MCA, and shall file with the department the Bona Fide Not-For"BFNP" Certificationform, to make its certification both initially …

2.59.1752 STATE-SPECIFIC PRELICENSING EDUCATION An individual seeking a mortgage loan originator's license shall complete two hours of prelicensing education specific to Montana residential mortgage statutes and rules. This rule will become effective on March 1, 2014. Authorizing…

2.59.1753 APPLICATIONS FOR INITIAL LICENSE NEAR YEAR-END; WHEN APPLICATION FOR INITIAL LICENSE MAY BE DEEMED ABANDONED An application for initial license submitted to the department through NMLS during the period of November 1 through December 31 is deemed an application for lice…

2.59.1754 CLARIFICATION OF DEFINITION OF "REGULARLY ENGAGE" A person who advertises in any manner is holding themselves out to the public as being able to act as a mortgage loan originator, mortgage broker, mortgage lender, or mortgage servicer in Montana. By so doing, the person…

2.59.1755 DEFINITION OF "ALTER" FOR MORTGAGE LICENSEES The word "alter" as used in 32-9-124(1)(l), MCA, means that loan documents may not be revised by: using correction fluid, correction tape, or any other means of changing or covering over a date or signature not on the origina…

2.59.1756 GOVERNMENT SPONSORED ENTERPRISES The government-sponsored enterprises for the mortgage servicer capital requirements in the Montana Mortgage Act are: Federal Home Loan Mortgage Corporation (Freddie Mac); Federal National Mortgage Association (Fannie Mae); or Federal Hom…

2.59.1757 DESIGNATED MANAGER SUPERVISORY REQUIREMENTS If a designated manager supervises more than one location, a mortgage broker or mortgage lender must have a written policy which addresses supervision of multiple licensed locations. The policy must include the frequency of: c…

2.59.1758 FALSE, DECEPTIVE, OR MISLEADING ADVERTISING False, deceptive, or misleading advertising includes but is not limited to advertising or marketing that: is defined by this rule as false, deceptive, or misleading; violates 32-9-149, MCA, or this rule; violates any applicabl…

2.59.1759 INTERNET OR ELECTRONIC ADVERTISING For the purpose of this rule, "Internet" means the Internet, the World Wide Web, or Internet-based electronic information distribution networks, and any derivative delivery systems or evolutions of such delivery systems that may be con…

2.59.1760 EXAMINATION FEES A mortgage lender, broker, or servicer shall pay to the department the actual cost of any examination or investigation which must include expenses for necessary travel for the purposes of conducting the examination or investigation. Authorizing statute(…

2.59.1761 ACTIVITIES REQUIRING A LICENSE For purposes of 32-9-124(1)(h), MCA, the department adopts by reference Appendices A through D of 12 CFR 1008 (Regulation H) (July 1, 2022). The appendices may be found on the department's website at banking.mt.gov . Authorizing statute(s)…

2.59.1801 MORTGAGE LENDER SURETY BOND (REPEALED) Authorizing statute(s): 32-10-303, 32-10-502, MCA Implementing statute(s): 32-10-203, 32-10-208, 32-10-303, MCA History: NEW, 2008 MAR p. 1579, Eff. 10/1/08; REP, 2010 MAR p. 212, Eff. 1/29/10.

2.59.1802 BRANCH OFFICE LICENSING (REPEALED) Authorizing statute(s): 32-10-203, 32-10-502, MCA Implementing statute(s): 32-10-202, 32-10-203, 32-10-208, MCA History: NEW, 2008 MAR p. 1579, Eff. 10/1/08; REP, 2010 MAR p. 212, Eff. 1/29/10.

2.59.1803 SUPERVISION OF OFFICES AND LOAN OFFICERS (REPEALED) Authorizing statute(s): 32-10-502, MCA Implementing statute(s): 32-10-202, 32-10-203, 32-10-208, MCA History: NEW, 2008 MAR p. 1579, Eff. 10/1/08; REP, 2010 MAR p. 212, Eff. 1/29/10.

2.59.1804 RESPONSIBILITY FOR ACTS OF AGENTS (REPEALED) Authorizing statute(s): 32-10-502, MCA Implementing statute(s): 32-10-207, 32-10-501, MCA History: NEW, 2008 MAR p. 1579, Eff. 10/1/08; REP, 2010 MAR p. 212, Eff. 1/29/10.

2.59.1805 WAIVER OF IN-STATE OFFICE REQUIREMENT (REPEALED) Authorizing statute(s): 32-10-309, 32-10-502, MCA Implementing statute(s): 32-10-309, MCA History: NEW, 2008 MAR p. 2621, Eff. 12/25/08; REP, 2010 MAR p. 212, Eff. 1/29/10.

2.59.1901 EXAMINATION FEES (REPEALED) (REPEALED) Authorizing statute(s): 32-11-105, MCA Implementing statute(s): 32-11-203, MCA History: NEW, 2007 MAR p. 1932, Eff. 11/22/07; REP, 2025 MAR, Notice No. 2025-900, Eff. 9/13/25.

2.59.2001 APPLICATION PROCEDURE FOR A CERTIFICATE OF AUTHORIZATION FOR A STATE-CHARTERED MUTUAL ASSOCIATION One or more individual incorporators desiring to organize a mutual association shall file with the department, an application for a certificate of authorization for a state…

2.59.2002 PERSUASIVE SHOWING OF REASONABLE PUBLIC NECESSITY AND DEMAND In determining whether a reasonable public necessity and demand is established in any case, the department requires that these words be given a meaning which will promote the public interest of the community a…

2.59.2003 MANAGEMENT OF PROPOSED MUTUAL ASSOCIATION To establish reasonable assurance that the mutual association will be safely and soundly operated as required by 32-2-801, MCA, and recognizing that the ultimate responsibility for management of a mutual association reposes in i…

2.59.2004 CAPITAL ADEQUACY OF PROPOSED NEW MUTUAL ASSOCIATIONS The applicant must provide a reasonable assurance that the proposed new mutual association will have adequate initial paid-in capital sufficient to: absorb initial operating losses under foreseeable business condition…

2.59.2005 MUTUAL ASSOCIATIONS - FDIC INSURANCE REQUIRED To comply with 32-2-801 and 32-2-809, MCA, it has been determined by the department that it is in the public interest to require all mutual associations to be accepted by the Federal Deposit Insurance Corporation (FDIC) for …

2.59.2006 PRO FORMA STATEMENT An operational projection shall be submitted as part of the application for new mutual association charters, in order to show that the new mutual association will remain solvent while meeting the requirements set forth in ARM 2.59.2004. The pro forma…

2.59.2009 CONVERSION OF A NATIONAL MUTUAL ASSOCIATION TO A STATE MUTUAL ASSOCIATION Upon conversion: the resulting state mutual association succeeds, without other transfer, to all the rights and property of the converted mutual association and is subject to all the debts and lia…

2.59.201 SAVINGS AND LOAN ASSOCIATIONS - REAL ESTATE (REPEALED) Authorizing statute(s): 32-2-401, 32-2-403, MCA Implementing statute(s): 32-2-407, MCA History: Eff. 12/31/72; TRANS, from Commerce, 2001 MAR p. 1178; REP, 2022 MAR p. 230, Eff. 2/12/22.

2.59.2010 FEE FOR CONVERSION OF A NATIONAL MUTUAL ASSOCIATION TO A STATE MUTUAL ASSOCIATION The fee for conversion of a federal mutual savings association to a state mutual savings association is $1,500.00. Authorizing statute(s): 32-2-704, MCA Implementing statute(s): 32-2-816, …