Date Enacted: February 17, 2015
Date Effective: October 1, 2015
This February, Montana SB 98 was enacted, revising the Montana Mortgage Act in relation to mortgage broker surety bonds.
SB 98 allows mortgage brokers, lenders and originators to file the surety bond required by the original law with the Nationwide Mortgage Licensing Systems and Registry or the Department of Administration. Additionally, all mortgage broker bonds must now be registered with the National Mortgage Licensing Systems and Registry.
Other updates to the Montana Mortgage Act cover pre-licensing education, experience requirements, who is required to meet licensing requirements, and re-worked definitions.
All of the revisions were made to make the mortgage act more clear and concise, and you can check them out in more detail below.
New Mortgage Broker Surety Bond Requirements
Mortgage broker surety bonds are a fact of the banking business. The revised Montana Mortgage Act requires that all reports and licensing be done directly through the NMLS rather than the state department. The law requires that licensed individuals report legal actions taken against them directly to the NMLS. These changes allow for ease of use for filing and renewing mortgage broker license bonds by allowing all filing to take place online on the NMLS website.
Revision to License Requirement Registration
In the new language, a mortgage originator, lender, broker or servicer that handles residential mortgages must still be licensed with the NMLS (National Mortgage Licensing System) but a unique ID is no longer needed.
Other Notable Changes
Experience Requirements For Mortgage Brokers
A “responsible individual” is now defined as someone who has had at least one-and-a-half years of experience as a mortgage loan originator. The experience may also be in a field that is related to mortgage origination.
Licensing And Renewal
All applications for licensing or renewal for mortgage brokers, mortgage loan originators, mortgage servicers and mortgage lenders will now be completed with NMLS forms and and follow all NMLS policies for licensing.
This change makes it clear that all mortgage bank branch locations much be in the United States or a United States territory. These branches should all apply for licenses through the NMLS and have a unique identifier. Plus, mortgage brokers and lenders are now responsible for the actions of their employees, and managers are now responsible for actions of their employees that break state or federal laws, rules and/or regulations.
Montana state departments will no longer create their own forms, but instead will use the NMLS forms. State departments have also lost the right to provide education and will lose some rights towards rulemaking.
Requirements For Reports
License holders will now be required to file written reports directly to the NMLS. These written reports will be to file changes in information about the license holder and to inform the NMLS when said license holder has be convicted of a felony.
Check out the full revised Montana Mortgage Act for more details.
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