Montana Adopts Changes to Mortgage Licensing Laws
by Paul McSheffrey, J.D.
With Senate Bill No. 98, the Montana legislature has recently adopted changes to its state mortgage licensing laws. The amendments include changes to definitions, licensing requirement clarifications, changes to experience requirements, and clarifications to control persons required to meet licensing requirements.
Several definitions have been added or changed under 32-9-103.
The definition of “advertising” under 32-9-103(2), MCA now specifically includes commercial messages generated through social media and software.
Additionally, 32-9-103(10) now defines “clerical or support duties” as collection and analysis of information for processing, underwriting, and communicating with a consumer. The definition excludes communications for negotiating loan terms and taking loan applications.
The definitions of mortgage broker, mortgage lender, mortgage loan originator, and mortgage servicer now include those persons who hold out to the public that they may perform those functions.
The act also alters the definition of “regularly engage”. The definition includes a person who has engaged in five or more mortgage transactions in the previous year and expects to engage in five or more in the future year. The previous definition required twelve or more transactions in the year.
A definition has been added for “responsible individual”. A responsible individual is defined as a loan originator licensed in Montana with at least one and a half years of experience. They must be designated as the person responsible for operating a location and the person who manages, supervises and controls the location.
The act has removed the option under 32-9-104, MCA to register with the NMLS as an exempt registrant for the purpose of sponsoring a mortgage loan originator and for purposes of satisfying bonding requirements. Under 32-9-112, applications and renewals are now specifically governed by the forms and policies of the NMLS. Under 32-9-113, all branch offices must be located in the United States or United States territory.
These changes become effective on October 1, 2015.
Paul McSheffrey, J.D. is a Regulatory Compliance Consultant at Bankers Advisory, A CliftonLarsonAllen LLP Division. He is a graduate of Northeastern University and New England School of Law. Paul is a member of the Bar in Massachusetts and New York. He can be reached at paul@bankersadvisory.com
Paul McSheffrey, JD, is a senior regulatory compliance consultant with CLA. He is a graduate of Northeastern University and earned his juris doctor at the New England School of Law. He is admitted to the Bar in both Massachusetts and New York.
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