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The Montana Division of Banking and Financial Institutions (Division) provides the following a high-level overview of the changes to the Montana Mortgage Act (MMA) enacted by House Bill 30 (HB 30). The Division encourages licensees to read the full text of HB 30 to be informed of all changes. More information and FAQs can be found on the Division's HB 30 webpage.
HB 30 allows for remote work. Employees and independent contractors may not meet with the public at unlicensed remote work locations. They also must meet certain conditions related to advertising, business record storage security, and supervision. Remote workers must still be sponsored by a licensed location and under the supervisor of a designated manager. Retail branch locations are still required to hold a branch license.
HB 30 changes the designated manager (DM) requirement. Previously, every location with a lender or broker license was required to be supervised by a DM. Now, a lender or broker may have one DM who is responsible for the mortgage origination activity conducted by all MLOs, employees, contractors, and agents assigned to the entity. The DM must be a Montana-licensed MLO with three years of experience. Licensed branch offices are no longer required to have separate branch managers, but it is allowed under the statute.
The new sections of this bill require mortgage servicers to maintain capital and liquidity standards and corporate governance standards as set forth by the Division by rule. The bill requires the Division to adopt CSBS’s “Model State Regulatory Prudential Standards for Nonbank Mortgage Servicers,” which are nationwide standards intended to bring stability and consistency to the mortgage servicing market. While the bill is effective on 7/1/23, it is unknown when rules will be proposed or adopted. HB 30 gives the Division authority to add financial conditions for high-risk servicers and to remove conditions for low-risk servicers. The bill adds reverse mortgage providers to the definition of mortgage servicer and excludes nonprofit lenders from servicing requirements on the loans they make.
HB 30 requires a licensee to file a written report to the Division within fifteen business days after the licensee has reason to know of a cybersecurity incident.
HB 30 removes examination fees for licensed entities. The license application fees are sufficient to cover the cost of examinations. The Division retains the ability to charge unlicensed entities for exams.
Tags: Non Depository News
Division of Banking & Financial Institutions
Mailing Address:
PO Box 200546
Helena MT 59620
Physical Address:
301 S. Park Ave, Suite 316
Helena, MT 59601