Montana Implements Provisions Concerning Renewal Fees and Licensing Definition
The Montana Department of Administration amended its provisions by reducing its licensing renewal fees for 2017 by 50%. This temporary rule is set to expire on March 1, 2017. In addition, the Department also adopted a new rule pertaining to the clarification of the definition of “regularly engage.” The provision regarding this new rule is effective on October 15, 2016.
Renewal Fees
According to the Department’s Division of Banking and Financial Institutions, the mortgage program is currently generating more revenue than it is spending. The Department believes this excess revenue is largely due to Montana’s recent adoption of the Uniform State Test, which has resulted in an increased number of mortgage loan originators applying for a Montana license. A 50 percent reduction will approximate needed expenditures for the year.
2.59.1738 Renewal Fees
- Licenses issued under Title 32, chapter 9, part 1, MCA, expire December 31. Licensees shall submit their renewal applications by December 1 of each year to ensure issuance of the license to qualified renewal applicants by January 1 of the following year. The renewal fees for the license period January 1 through December 31 are:
- 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 Entity $750.00
- Mortgage Servicer Branch $250.00
- The renewal fees listed in (1) are reduced by 50 percent for 2017. This section sunsets on March 1, 2017.
The Department does not intend to permanently decrease renewal fees for the mortgage program, because it does not know whether this trend will continue. This rule only will reduce the renewal fees by 50 percent for 2017. The Department plans to continue to monitor its revenue and expenses in the future and, if necessary, will revise the licensing and/or renewal fees up or down to keep mortgage program revenues in line with expenses.
Regularly Engage
The Montana Department of Administration is adding this new rule to clarify the license exemption for mortgage loan originators, mortgage brokers, mortgage lenders, and mortgage servicers conducting business in Montana. The term “regularly engage” applies to persons who engage in the business of a mortgage broker, lender, servicer, or mortgage loan originator on more than five residential mortgage loans in a calendar year or expect to engage in business on more than five residential mortgage loans in a calendar year.
Clarification of Definition of “Regularly Engage”
- A person who advertises in any manner is holding themselves out to the public as being able to act as a mortgage loan originator, mortgage broker, mortgage lender, or mortgage servicer in Montana. By so doing, the person expects to engage in the business of a mortgage loan originator, mortgage broker, mortgage lender, or mortgage servicer in Montana within the meaning of 32-9-103(39), MCA.
- If a person licensed through the NMLS as a mortgage loan originator, mortgage broker, mortgage lender, mortgage servicer, or similar person in another state acts as a mortgage loan originator, mortgage broker, mortgage lender, or mortgage servicer in Montana, they are regularly engaging in business in Montana within the meaning of 32-9-103(39), MCA.
Each of the definitions of mortgage loan originator, mortgage broker, mortgage lender, and mortgage servicer contains a provision that requires licensure if the person represents or holds themselves out to the public as a mortgage loan originator, mortgage lender, mortgage broker, or mortgage servicer in Montana. A person who is not licensed and has not yet originated, brokered,
loaned, or serviced any loans in the state of Montana, but is advertising those services on the internet or other media is representing themselves to the public as being ready, willing, and able to perform those services in Montana and does not qualify for the exemption from licensure. The Department’s reasoning behind this rule is that given the fact that the person is advertising to the world that they can perform these services, it is disingenuous to claim that they do not expect to engage in more than five transactions in Montana. The Department does not want to create a situation that allows unlicensed entities to advertise that they are able to do business in Montana, and then claim they are exempt from licensure because they didn’t do enough business in Montana.
Comments are closed.