Title 32, Title 32

(1) (a) A mortgage loan originator must be covered by a surety bond in accordance with this section. If a mortgage loan originator is an employee of a licensed mortgage lender or mortgage broker, the surety bond of the licensed mortgage lender or mortgage broker may be used in li…

(1) A mortgage broker, mortgage lender, mortgage servicer, or mortgage loan originator may not do any of the following: (a) retain original documents owned by the borrower and submitted in connection with the loan application; (b) directly or indirectly employ any scheme to defra…

(1) The department, upon giving a mortgage broker, mortgage lender, mortgage servicer, or mortgage loan originator licensee 14 days' written notice, which includes a statement of the grounds for the proposed suspension, conditioning, or revocation, and informing the licensee that…

(1) A foreign mortgage broker, mortgage lender, or mortgage servicer shall register to do business in this state as a foreign corporation, limited liability company, limited liability partnership, or limited partnership with the secretary of state. (2) A foreign mortgage broker, …

A person engaging in loan processor or underwriter activities may not represent to the public, through advertising or other means of communication, that the person can or will perform any of the activities of a mortgage loan originator. (See part compiler's comment regarding cont…

(1) The department shall adopt rules necessary to carry out the intent and purposes of this part. The rules adopted are binding on all licensees and enforceable as provided under this part. (2) The rules must address: (a) revocation or suspension of licenses for cause; (b) invest…

(1) Whenever the department has reasonable cause to believe that any person is violating or is threatening to violate this part or a rule adopted under this part, the department may, in addition to all actions provided for in this part and without prejudice to those actions, seek…

(1) If the department finds, after providing a 14-day written notice that includes a statement of alleged violations and a hearing or an opportunity for hearing, as provided in the Montana Administrative Procedure Act, that any person, licensee, service provider, or officer, agen…

(1) All persons licensed under this part are required to renew their licenses by December 31 of each year. (2) A renewal application for a mortgage broker, mortgage lender, mortgage servicer, or mortgage loan originator must demonstrate that: (a) the licensee continues to meet th…

(1) An independent contractor entity may not offer or engage in clerical or support duties with respect to any dwelling or residential real estate in this state unless the independent contractor entity obtains and maintains a valid mortgage broker license through the NMLS. (2) An…

(1) For the purposes of this part, the department or the department's authorized representatives must be given free access to the offices and places of business and files of all licensees and their service providers. The department may investigate any matter, upon complaint or ot…

(1) If it appears to the department that a person has engaged in or is about to engage in any act or practice constituting a violation of any provision of this part or any rule adopted or order issued by the department pursuant to this part, the department may issue an order dire…

(1) An escrow fund authorized for any purpose by a mortgage loan contract is subject to applicable state and federal requirements. Money received from a borrower by a mortgage lender or mortgage servicer licensed under this part must be considered as held in trust immediately upo…

(1) A mortgage lender shall disclose the terms of the loan to the borrower in compliance with the disclosure requirements of the federal Real Estate Settlement Procedures Act of 1974, 12 U.S.C. 2601, et seq., the federal Truth in Lending Act, 15 U.S.C. 1601, et seq., and any regu…

(1) A licensee engaged in a business regulated by this part may not operate under a name other than the name licensed by the department. (2) A licensee may not: (a) advertise that an applicant has unqualified access to credit without disclosing that material limitations on the av…

(1) Each licensed mortgage broker, mortgage lender, mortgage servicer, and mortgage loan originator shall post the mortgage broker's, mortgage lender's, mortgage servicer's, or mortgage loan originator's unique identifier in a conspicuous place within the office where the license…

(1) Each licensee shall submit to the NMLS reports of condition, which must be in the form and must contain information that the NMLS may require. (2) Each mortgage loan originator shall ensure that all residential mortgage loans that close as a result of the mortgage loan origin…

Any document or record that is required to be signed and that is filed in this state as an electronic record through the NMLS and any other electronic record filed through the NMLS must be considered a valid original document upon reproduction to paper form by the department.

The department shall establish a process under which mortgage brokers, mortgage lenders, mortgage servicers, and mortgage loan originators may challenge information entered into the NMLS by the department. (See part compiler's comment regarding contingent suspension.)

(1) (a) Except as otherwise provided in section 1512 of the Secure and Fair Enforcement for Mortgage Licensing Act, Title V of the Housing and Economic Recovery Act of 2008, Public Law 110-289, the requirements under federal law, the Montana constitution, or Montana law regarding…

(1) The four types of licenses under this part are mortgage broker licenses, mortgage lender licenses, mortgage servicer licenses, and mortgage loan originator licenses. (2) A mortgage broker license may be issued to an entity that meets the requirements of 32-9-112, 32-9-113, 32…

(1) A licensee shall file a written report with the department through the NMLS within 30 business days of any material change to the information provided in a licensee's application. (2) A licensee shall file a written report with the department within 1 business day after the l…

(1) Without the prior approval of the department, it is unlawful for an action to be taken that results in a change of control of an entity licensed under this part. Prior to a change of control of a licensed entity, a person seeking to acquire control shall apply for an amendmen…

A mortgage lender may not: (1) cause or require a borrower to obtain property insurance coverage in an amount that exceeds the replacement cost of the improvements as established by the property insurer; (2) disburse the mortgage loan proceeds to a closing agent in any form other…

A mortgage servicer may not: (1) fail to comply with the mortgage loan servicing transfer, escrow account administration, or borrower inquiry response requirements imposed by the Real Estate Settlement Procedures Act of 1974, 12 U.S.C. 2601, et seq., and regulations adopted under…

In addition to any duties imposed by federal law or regulations or the common law, a mortgage servicer shall: (1) safeguard and account for any money handled for the borrower; (2) follow reasonable and lawful instructions from the borrower; (3) act with reasonable skill, care, an…

(1) A mortgage lender shall continuously maintain the minimum net worth required by this section. (2) A mortgage lender must have a minimum net worth of $250,000 and submit evidence that establishes compliance with this section. Evidence of net worth must include submission of re…

(1) Mortgage business may be conducted at a remote work location if: (a) the licensed mortgage entity's employees and independent contractors do not meet with the public at an unlicensed personal residence; (b) no physical or electronic business records are maintained at the remo…

As used in this part, unless the context clearly indicates otherwise, the following definitions apply: (1) "Allowable assets for liquidity" means those assets that may be used to satisfy the liquidity requirements in this part, including unrestricted cash and cash equivalents and…

(1) This part is applicable to covered institutions. For entities within a holding company or affiliated group of companies, applicability is at the covered institution level. (2) The following exclusions apply: (a) This part does not apply to not-for-profit servicers or housing …

(1) A covered institution shall maintain capital and liquidity in compliance with this section. (2) For the purposes of complying with the capital and liquidity requirements of this section, all financial data must be determined in accordance with generally accepted accounting pr…

Covered institutions shall establish and maintain corporate governance standards as set by the department by rule. The standards must include internal and external audits and risk management.

(1) If risk is determined by a formal review of a specific covered institution to be extremely high, the department may order or direct the institution to satisfy additional conditions necessary to ensure that the institution will continue to operate in a safe and sound manner an…

The department shall adopt rules necessary to carry out the intent and purposes of this part. In adopting rules under this part, the department shall use the final model state regulatory prudential standards for nonbank mortgage servicers in effect at the time of rulemaking as pu…