Montana Amends Multiple Mortgage Lending Licensing Provisions

The Montana Department of Administration amended its rules relating to surety bond, table funding, application of financial standards, and reporting forms for mortgage servicers. These provisions became effective July 8, 2017.

Surety Bond

The surety bond must be issued by a surety company that is authorized to do business in Montana. The bond must be placed on file with the NMLS. This includes any and all riders and endorsements executed subsequent to the effective date of the bond. The entity name on the application must exactly match the name on the surety bond. The bond must also be continuous. The bond is deemed one continuous obligation whether or not it is renewed, continued, reinstated, reissued, or otherwise extended, replaced, or modified. The surety on the bond is not liable in an aggregate or cumulative amount exceeding the penal sum set forth on the face of the bond. 2.59.1706(1).

Table Funding

The table funding rule requiring licensure remains the same. The rule was amended to replace the implementation statute 32-9-108 because it was repealed in 2009. The rule now implements 32-9-102. 2.59.1708(1).

Application of Financial Standards

The statute regarding application of financial standards remains the same. The rule was amended to remove the implementation statute 32-9-166 because the statute was stated in error and does not apply to the application of financial standards. 2.59.1739(1)-(2).

Reporting Forms for Mortgage Servicers

The mortgage servicer may choose to submit either the expanded mortgage call report through the NMLS or the Quarterly Statement for Mortgage Servicing Activity dated May 31, 2016 for every quarter during which they held a license. The Quarterly Statement for Mortgage Servicing Activity dated May 31, 2016 is available on the division’s website. 2.59.1743(2)-(3).

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Laura Eckstein, JD, is a regulatory compliance consultant with Bankers Advisory. She is a graduate of the University of Rhode Island and earned her juris doctor at Suffolk Law School. She is admitted to the Bar in Massachusetts and New Hampshire.

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