Montana Revises Record Keeping and Reporting Requirements
By Margaret Wright, J.D.
January 14, 2016 Effective December 24, 2015 the Montana Department of Administration adopted the November proposed amendments concerning record keeping requirements for mortgage brokers and mortgage lenders and reporting forms for mortgage servicers. The requirements of ARM 2.59.1710 and 2.59.1724 regarding maintenance of records and ARM 2.59.1743 regarding servicer reporting forms have been updated to include reflect recent regulatory updates as required under Dodd-Frank and to update additional technical references.
Record Keeping Requirements
In addition to the existing record keeping requirements of 2.59.1710 and 2.59.1724, both mortgage brokers and mortgage lenders must maintain signed copies of the Loan Estimate and Closing Disclosure documents as required by the TILA-RESPA Integrated Disclosure rule (TRID). Although borrower signatures are optional under the federal TRID requirements, to comply with the Montana record keeping requirements the copies of the Loan Estimate and Closing Disclosure be signed and dated by the borrower.
Mortgage brokers must maintain a record of the “the names of all individuals who received compensation for originator or assisting in the origination of the loan.” Additionally the regulation has been revised to strike the reference to the “yield spread premium” and instead specifies that mortgage brokers must maintain a record of the adjusted origination charges received by the broker at loan closing. The requirement under 2.59.1710(2) for a mortgage broker to maintain a trust account records file showing checks written relating to the business as a mortgage broker has been removed.
Reporting Forms
The reporting forms section has been minimally revised to reflect the updated website address for the Quarterly Statement for Mortgage Servicing Activity dated September 3, 2015, replacing the previously referenced Statement dated December 23, 2011. The servicer’s expanded Mortgage Call Report (MCR) or the Quarterly Statement for Mortgage Servicing Activity shall be submitted through the NMLS on a quarterly basis.
Margaret Wright, JD, is regulatory compliance director with CLA. She is a graduate of Stonehill College and earned her juris doctor at Suffolk University Law School. She is admitted to the Massachusetts Bar.
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