Does the state require a physical location within the state?
A person or entity licensed as a mortgage broker must maintain at least one physical office located in Montana.

Is there individual loan officer licensing?
Yes, individuals are licensed as loan originators.

What are lenders, brokers and loan officers called?
Montana uses the terms mortgage lender, mortgage broker and loan originator.

What is the cost of a license? Surety bond? Are there net worth requirements?
Montana's Mortgage Broker and Loan Originator Licensing Act requires mortgage brokers and loan originators to be licensed by the Department of Administration through the Division of Banking and Financial Institutions. This licensing obligation applies only to mortgage brokers. Residential mortgage lenders doing business in Montana will be required to be licensed by the Division of Banking and Financial Institutions as of October 1, 2008. This new licensing requirement was created by the Montana Residential Mortgage Lender Licensing Act that was signed into law on May 3, 2007.

An applicant for a mortgage broker license must pay a license application fee of $500. A loan originator applicant must pay a license application fee of $400. Licenses are valid for a one-year period and expire on June 30. Applicants must meet work experience and educational requirements, and must successfully complete an examination. Individuals applying for a license as a mortgage broker must have at least three years of experience working as a loan originator, as a mortgage banker, or in a related field. An individual applying for a license as a loan originator must have a minimum of six months of experience working in a related field. A surety bond in the amount of $25,000 must be provided for each licensed location.

The Montana Consumer Loan Act does not specifically require mortgage lenders to be licensed under the act. However, a lender is required to obtain a license under this act if it makes consumer loans in excess of the usury rate. Lenders should be cognizant of this requirement since loans made in excess of the usury rate by an unlicensed lender are void.

Is there a pre-licensing education requirement? Is there a test?
Prior to licensing individual mortgage brokers and loan originators are required to submit evidence of passing a mortgage broker and loan originator certification test. The test must be taken from an approved education provider.

Is there a CE requirement?
Yes. 12 hours of approved continuing education is required per licensing year for brokers and originators.

Are there different requirements for mortgage brokers and mortgage lenders (i.e. can you broker under a lender license?).
There is currently no licensing for lenders unless a license under the Consumer Loan Act would be required based on the interest rate of loans being made.

Are there any state specific high cost loan provisions?
No.

Are there any state specific predatory lending laws?
No.

Closing practices – attorney or title state? Wet or dry settlement?
Montana has no statutory reference to wet settlement or good funds. Closings should be handled as if the state had a good funds law or regulation.

Are there 2nd mortgage policies and/or restrictions? Do you need a separate license to do 2nd mortgages?
See the section on licensing with respect to the Consumer Loan Act.

Who is the regulator and what is their contact information?
Mortgage Broker and Loan Originator Licensing Act
Department of Administration
Division of Banking and Financial Institutions
PO Box 200546
Helena, Montana 59620-0546
Phone (406) 841-2920
Fax (406) 841-2930
http://banking.mt.gov/

Consumer Loan Act
Department of Financial Institutions
Lee Metcalf Building
846 Front Street
P.O. Box 200546
Helena, MT 59620-0546
Phone (406) 444-2091
Fax (406) 841-2930
http://banking.mt.gov/

DISCLAIMER: The data contained here is for informational purposes only. It should not be the sole resource for licensing decisions. Please consult the regulator and/or an attorney that specializes in these matters before taking action.

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