Montana Mortgage Broker Bond

The Montana Division of Banking and Financial Services is the authority for mortgage broker, lender and servicer licensing compliance. Under the Montana Mortgage Act (MMA), licensees for each of these licenses must have a surety bond.  

This surety bond is an agreement between three parties: 

• Principal: The mortgage broker that needs to get the bond.
• Obligee: Entity requiring the principal to get bonded.
• Surety: The company that issues the bond.

Mortgage brokers, along with mortgage lenders and servicers must abide by the rules and regulations defined in the MMA. A person injured by a violation of these rules and regulations can file a claim with the surety. The surety will review the claim to determine its validity. 

The claim amount will be paid based on the bond’s terms. The principal must compensate the surety in full for the claim amount. Abiding by the rules and regulations outlined in the MMA is the best way of avoiding claims against the bond, according to our customers.

The cost of a Montana mortgage broker or lender bond ranges from $250 to $1,000, with required bond amounts between $25,000 and $100,000. For mortgage servicers, bond amounts range from $75,000 to $350,000, with costs between $750 and $3,500.

The bond premium or total cost is determined by a bond rate that generally ranges from 1% to 10%. 

Use this chart to estimate your bond cost before applying:

Are you interested in learning which factors affect how much a bond costs? Your credit score is one of the most influential factors used to determine the bond cost. Other factors include the applicant’s industry experience, finances and bond history.

1. Apply For Your Bond

Obtaining a Montana mortgage broker, lender or servicer bond is easy to do with three simple steps. To get started, choose from our two convenient application methods. 

1.  Apply for a bond online – Our online application only takes a few minutes to fill out, and you can access it 24/7. After applying, you will receive an instant quote by email. 
2. Call us at (888)-592-6631 – Our bond specialists are available to speak with you personally and assist with your application over the phone.

When applying, you will need:

• Bond name (Montana Mortgage Broker or Lender Surety Bond or Montana Mortgage Servicer Licensee Surety Bond)
• Bond amount ($25,000 - $350,000)
• Email and contact information

2. Get a Quote

Our customers enjoy receiving a quick bond quote in their inboxes. We are happy to review the quote with you and answer your questions.

3. Purchase Your Bond

You will have online access to your bond documents and invoice. Please reach out to us if you notice an error before signing the paperwork. Once you have signed the documents and paid the invoice, we will email your original document to you.

When applying for a Montana mortgage broker license, an electronic surety bond must be submitted through the NMLS. The Montana Division of Banking and Financial Institutions is the regulatory authority overseeing the licensing and enforcement of mortgage brokers, lenders, and servicers within the state.

Mortgage brokers or lenders are required to provide a Montana Mortgage Broker or Lender Surety Bond, while mortgage servicers must submit a Montana Mortgage Servicer Licensee Surety Bond.

These bonds are continuous and remain active until canceled by the surety. The surety must provide a written cancellation notice to the principal and obligee.

If you have any questions regarding who needs a bond, the required bond amount, etc., please contact us. 

Recently, we had the pleasure of helping a client obtain her Montana mortgage broker license, enabling her to start her business in the state. She was committed to meeting all regulatory requirements but needed guidance navigating the licensing and bonding process. We worked closely with her, helping secure the correct bond amount and ensuring it was submitted through the appropriate channels, so she could smoothly complete her licensing process.

To complete the licensing process for Montana mortgage brokers, lenders and servicers, you must submit the required documentation to the Nationwide Mortgage License System. These are the licensing requirements:

• Application
• Qualifying individual with proof of experience
• Sponsorship
• Credit report
• FBI criminal background check
• Electronic surety bond
• Business plan
• Certificate of Authority/Good Standing
• Entity formation documents
• Management chart
• Organizational chart
• Financial statements, for a lender or servicer license
• Escrow account authorization, for a lender or servicer license
• Bank account, for a servicer license
• Schedule of costs and fees, for a servicer license

Nationwide Mortgage Licensing System. (n.d.). Checklist compiler.
https://mortgage.nationwidelicensingsystem.org/slr/SitePages/Checklist-Compiler.aspx

Montana Division of Banking and Financial Institutions. (n.d.). Montana Division of Banking and Financial Institutions.
https://banking.mt.gov/

Nationwide Multistate Licensing System. (n.d.). Montana mortgage lender bond form.
https://mortgage.nationwidelicensingsystem.org/slr/StateForms/MT3-Mortgage_Bond_Form.pdf

Nationwide Multistate Licensing System. (n.d.). Montana servicer surety bond form.
https://mortgage.nationwidelicensingsystem.org/slr/StateForms/MT6-servicer%20surety%20bond.pdf

Montana Legislature. (n.d.). Title 32, chapter 9, part 1: Sections index.
https://archive.legmt.gov/bills/mca/title_0320/chapter_0090/part_0010/sections_index.html