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Montana Mortgage Broker License Requirements
To qualify for a mortgage broker license in Montana, you must meet these basic requirements:
- Be at least 18 years old
- Have a high school diploma or GED
- Pass required exams (see below)
- Submit fingerprints for an FBI background check
- Maintain an office in Montana
- Maintain an errors and omissions insurance policy
- Have no felony convictions in the past 7 years
Education Requirements
Montana requires mortgage brokers to take 20 hours of pre-licensing education courses approved by the Nationwide Mortgage Licensing System (NMLS). These courses cover topics like ethics, lending laws, fraud prevention, and the nontraditional mortgage marketplace.
You must also pass the National Test Component with Uniform State Content and the Montana State Component exam. Both exams are administered through the NMLS.
License Application
To apply for a new mortgage broker license in Montana, you must submit the following through the NMLS:
- Company (MU1) Form
- Individual (MU2) Form
- Employment history for the past 10 years
- Fingerprints for background check
- Surety bond
- Financial statements
- Certificate of pre-licensing education completion
All application fees must also be paid at this time.
Once the application is submitted, the Montana Division of Banking and Financial Institutions will review it and make a licensing determination. The process typically takes 60-90 days.
Maintaining the License
Once approved, Montana mortgage broker licenses must be renewed annually by December 31. You'll need to complete at least 8 hours of continuing education each year as well.
The license renewal fee is $500, along with any NMLS processing fees.
Brokers must update their MU1 form within 10 days if any information changes, such as business address or contact info.
Types of Mortgage Broker Authority in Montana
There are a few different types of authority you can apply for as a mortgage broker in Montana:
- Mortgage broker - Works with lenders to originate mortgage loans. This is the most common license.
- Mortgage lender - Can fund mortgage loans with their own funds in addition to brokering loans.
- Mortgage servicer - Services mortgage loans by collecting payments, escrow accounts, taxes, etc.
You can apply for one or multiple authorities when getting your Montana mortgage license. Each authority has additional requirements beyond the basic mortgage broker license.
Montana Mortgage Broker Exam Details
As mentioned, candidates must pass two exams to qualify for a mortgage broker license in Montana - the National test and the Montana State Component.
National Test
The National Test consists of 115 multiple choice questions covering general mortgage industry topics. You have 300 minutes to complete it. The passing score is 75%.
Subject areas on the National Test include:
- Ethics
- Uniform State Content
- General Mortgage Knowledge
- Mortgage Loan Origination Activities
- Federal Laws and Regulations Pertaining to Mortgage Lending
Montana State Component
The state exam covers Montana-specific laws and regulations. It contains 60 multiple choice questions. You have 120 minutes to complete it and must score 75% or higher to pass.
Topics covered by the Montana State Component include:
- Licensing
- Advertising
- Disclosures
- Prohibited Activities
- Records Management
- Mortgage Broker Duties and Responsibilities
You'll want to study both the national mortgage lending concepts as well as Montana statutes to prepare for the two exams.
How Much Does a Mortgage Broker License Cost in Montana?
The costs to get licensed as a mortgage broker in Montana include:
- Pre-licensing education: $200-300
- National Test: $120
- State Test: $95
- NMLS Processing Fees: $100
- License Application: $500
- Fingerprints: $50
- Surety Bond: $12,500+
So in total, expect licensing costs to be around $14,000 or more when accounting for education, testing, application fees, and the surety bond requirement.
The annual license renewal fee is $500.
Requirements for Mortgage Brokers vs Loan Officers
In Montana, mortgage brokers and mortgage loan officers have some overlapping requirements but brokers must meet additional standards.
Mortgage brokers are responsible for overseeing entire mortgage loan transactions. They work with lenders and manage loan officers. Requirements include:
- Pre-licensing education
- Passing National and State exams
- Submitting the company MU1 form
- Maintaining an office in Montana
- Obtaining a surety bond
Loan officers assist brokers by working directly with borrowers. Their requirements are simpler:
- Pre-licensing education
- Passing National Test Component
- Submitting individual MU2 form
- Associating with a licensed broker
In summary, brokers have more responsibilities under Montana law and must meet the baseline requirements for loan officers plus additional licensing standards.
Process Of Applying For A Montana Mortgage Broker License
The online application portal provided by the Montana Division of Banking and Financial Institutions offers a user-friendly platform to submit your license application. Here's a step-by-step guide to help you through the process:
- Access the Online Portal: Start by visiting the official website of the Montana Division of Banking and Financial Institutions. Look for the dedicated section related to mortgage broker licensing.
- Create an Account: If you're a first-time user, you'll need to create an account on (Register) the portal. This involves providing basic personal information and creating login credentials.
- Select the Application Type: Choose the specific license type you're applying for – in this case, the Montana mortgage broker license.
- Complete the Application Form: The online application form will prompt you to input various details, including your personal information, educational background, and relevant experience. Ensure that all information is accurate and up-to-date.
- Upload Documents: The online platform allows you to upload the required documents directly. This might include your course completion certificates, background check results, and any other documentation requested.
- Pay the Application Fee: Online payment options are usually available. Pay the required application fee using a secure payment gateway. Remember to keep a record of your payment receipt.
- Review and Submit: Before finalizing your application, take a moment to review all the entered information and uploaded documents. Ensure that there are no errors or omissions.
- Submit Your Application: Once you're satisfied with the accuracy of your application, hit the "Submit" button. Your application will be officially submitted for review.
- Confirmation and Tracking: After submission, you'll likely receive a confirmation email acknowledging the receipt of your application. This email might also provide you with a reference number or tracking information for your application's progress.
- Wait for Review: Now comes the waiting period. The relevant authorities will review your application, conduct background checks, and evaluate your eligibility based on the provided information.
The online application process offers a level of convenience that was not available in the past. It allows you to complete the necessary steps from the comfort of your own home or office, saving you valuable time and effort.
As you navigate the online application process, ensure that you follow all instructions carefully, provide accurate information, and meet all the necessary deadlines. By doing so, you'll be one step closer to obtaining your Montana mortgage broker license and embarking on a rewarding career in the mortgage industry.
Montana Mortgage Broker FAQs
Do I need a mortgage broker license to originate loans in Montana?
Yes, you must have an active mortgage broker or mortgage lender license issued by Montana to originate residential mortgage loans in the state. Certain individual and agency exemptions apply.
Does Montana participate in NMLS?
Yes, Montana utilizes the Nationwide Mortgage Licensing System (NMLS) to manage mortgage industry licensing, applications, renewals, and more. You will submit documents and fees through NMLS.
Who issues mortgage broker licenses in Montana?
The Montana Division of Banking and Financial Institutions is responsible for reviewing, approving, and issuing mortgage broker licenses. They regulate licensees.
What are common reasons mortgage broker licenses are denied in Montana?
Having a felony conviction in the past 7 years, insufficient pre-licensing education, and failing to pass required exams are top reasons for license denial in Montana. Failing to disclose correct information on the application can also lead to denial.
How long does it take to get a Montana mortgage broker license?
It typically takes 60-90 days after submitting the license application through NMLS to get approved. Factors like exam results and background check findings impact the timeline.
Can I work as a mortgage broker while my Montana application is pending?
No, you cannot originate loans or conduct other licensed mortgage activities in Montana until your license application has been fully approved.
Do I need a separate broker license for each Montana office location?
No, your Montana mortgage broker license covers all branch locations associated with your company. Each branch must be registered in NMLS.
Does Montana offer temporary mortgage broker licenses?
No, Montana does not offer temporary or conditional mortgage broker licenses. You must meet all requirements and be approved for a full license before conducting business.
Getting licensed as a mortgage broker in Montana involves meeting specific prerequisites, passing exams, submitting application paperwork, and maintaining standards of practice. By following the necessary steps, you can be approved to originate ethical mortgage loans across the state.
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