Montana Adopts Rule Temporarily Reducing Licensing Renewal Fees
By Brian Castine
Effective as of September 25, 2015 the Department of Administration of the State of Montana has enacted a rule that temporarily reduces licensing renewal fees for 2016. This rule expires on March 17 2016. The department has amended ARM 2.59.1738, as proposed on July 30, 2015. The licenses that are the subject of this change include: mortgage brokers, lenders, servicers, and originators.
1. Any license that is issued under Title 32, chapter 9, part 1, MCA will expire on December 31. Any licensee that wishes to renew their license shall submit their renewal by December 1, so that there is ample time to ensure the license is qualified and active by January 1, of the following year.Fee Schedule for January 1 – December 31:
Mortgage Broker Entity: $500.00
Mortgage Broker Branch: $250.00
Mortgage Lender Entity: $750.00
Mortgage Lender Branch: $250.00
Mortgage Loan Originator $400.00
Mortgage Servicer: $750.00
Mortgage Servicer Branch: $250.00
2. The above mentioned fees are shown at the discounted rate, 50% less than normal, and the prices will change on March 17, 2016. There was a clause for section 1 that read, (except as provided in 32-9-117(1)(b), MCA). This has been removed because it applies to initial applications, and not renewals.
The Department of Administration is funded through the licensing fees that are charged for each type of license. Presently, the licensing program is creating more revenue than is needed for the administration’s expenditures. Therefore, the fees for licensing renewals will be lowered by 50 percent for the year of 2016, and 2016 only, unless further notice is made. The reason for the drop in fees is due to the increase in mortgage loan originators that are applying for a Montana license. The administration can now charge less for the license renewals due to the increase in applicants, which spreads the administrations expenses across more licensees, causing the price to drop.
Currently licensed in Montana:
- 92 mortgage broker entities, 158 mortgage lender entities, and 136 mortgage servicer entities
- 75 mortgage broker branches, 224 mortgage lender branches, and 120 mortgage servicer branches; and 1861 mortgage loan originators
The administration is anticipating that 80 percent of the loan originators, 97 percent of the mortgage companies, and 91 percent of the mortgage company branch licensees will be applying for a renewal of their license, based off of the renewals for last year. This temporary change in fees will reduce the revenues of the department by an estimated $474,500.
3. An electronic copy of this rule can be obtained through the administration’s website at http://doa.mt.gov/administrativerules. The administration endeavors to make the electronic and official version, as printed in the Montana Administrative Register, match with each other. However, only the official printed text is regarded as the true and actual copy. If there are any discrepancies between the electronic and printed version, please refer to the printed version for any official use.
4. Any person that would like to receive notices of new rules making actions that are proposed may have their name added to the mailing list. Notices will be sent via e-mail unless a mailing list preference is expressly noted. Such requests can be mailed or delivered to Wayne Johnston, Division of Banking and Financial Institutions, 301 S. Park, Ste. P.O. Box 200546, Helena, Montana 59620-0546: faxed to (406) 841-2930; e-mailed to banking@mt.gov; or by completing a request form provided during any rules hearing held by the department.
5. The bill sponsor contact requirements of 2-4-302, MCA, do not apply.
6. The administration had determined that under 2-4-111, MCA, the amended rule will not significantly and directly affect small businesses.
Anna DeSimone founded Bankers Advisory in 1986 and is a nationally recognized authority in residential mortgage lending. She has received numerous industry awards and has authored more than 40 best practices guides and hundreds of articles.
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