SAFE Act Information
On July 30, 2008, the President of the United States signed into law the Housing and Economic Recovery Act of 2008. Title V of the Act, entitled The Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (S.A.F.E. Mortgage Licensing Act), recognizes and builds on states efforts to enhance consumer protection, and reduce fraud, by requiring ALL mortgage loan originators to be either state-licensed or federally registered. Under the S.A.F.E. Mortgage Licensing Act, all states must implement a Mortgage Loan Originator (MLO) licensing process that meets certain standards through the Nationwide Mortgage Licensing System & Registry (NMLS). The Act requires all MLOs seeking state-licensure, or currently holding a state license, to pass the NMLS-developed S.A.F.E. Mortgage Loan Originator Test, including both national and state components, with a score of 75% or better on each component.
These new requirements will affect how you do business if you participate in homeownership activities, including homebuyer assistance and homeowner rehab activities funded by the HOME Program.
New Information
Notice of changes to the Mortgage Administratin Rules in Montana: Click here for entire document.
Materials from the SAFE Act Webinar
presented Wednesday ~ January 6, 2010
Do I need a License?
Exemption Claim Form
Submit completed form to:
Division of Banking and Financial Institutions
301 South Park, Suite 316
PO Box 200546
Helena MT 59620
HUD's Proposed SAFE Act Rules.
Public Comment Period ends February 16, 2010.
It is very important to read this document and to let HUD know what you think and how this will affect you. The first page contains instructions for submitting comment either by mail or electronically.
Questions from the SAFE Act Webinar attendees with answers from Kelly and Chris
Links to Licensing Requirements, Test Materials, Fees and Other Related Information
Here are the useful links promised and provided by Christopher Romano, along with some of the estimated fee costs. Chris Romano is the Consumer Finance Examination Manager for the Division of Banking and Financial Institutions.
He offered his availability to answer any questions you may have.
Email him at cromano@mt.gov or call him at 841-2928.
Montana Mortgage Licensing Requirements
http://mortgage.nationwidelicensingsystem.org/
From this page, click on Montana on the map.
Division of Banking and Financial Institutions
http://banking.mt.gov/default.mcpx
Great, up-to-date banking industry news and information.
Montana Mortgage Broker, Mortgage Lender and Mortgage Loan Originator Licensing
http://banking.mt.gov/mortgage.mcpx
Useful information for mortgage licensees in Montana.
NMLS Information
http://banking.mt.gov/nmlsinfo.mcpx
A useful pageful of links from the National Mortgage Licensing Requirements webpage.
Experience Requirements for Mortgage Loan Originators
The Montana Mortgage Broker, Mortgage Lender, and Mortgage Loan Originator Licensing Act requires that all mortgage loan originators have six months of experience working in a related field pursuant to 32-9-109, MCA. A related field is defined in ARM 2.59.1701(11). Each principal or branch office that originates mortgage loans must have one designated manager. The designated manager must have three years of experience working as a mortgage loan originator or in a related field.
Montana Annotated Code 2009, 32-9-109, Experience requirements
Montana Annotated Code 2009, 32-9-122, Designated manager and branch license requirements
Administrative Rules of Montana (ARM 2.59.1701(11)) Mortgage Broker and Loan Originator Licensing
Experience Requirements for Mortgage Loan Originators
Getting Started with the Nationwide Mortgage Licensing System (NMLS): Companies
For Companies: a great step-by-step guide.
Getting Started with the Nationwide Mortgage Licensing System (NMLS): Mortgage Loan Originators
For Mortgage Loan Originators: a great step-by-step guide.
National Test (Available now)
The Nationwide Mortgage Licensing System & Registry (NMLS) has an NMLS Resource Center available to companies, regulators and individuals to provide information and guidance on state participation, testing, pre-licensing and continuing education, and system-related updates. In addition to reviewing this MLO Testing Handbook, it is recommended that candidates visit the NMLS Resource Center for more information.
Additional Testing Information
Pre-Licensing Education (20 hours)
List of NMLS Approved Education Providers
Annual Licensing Fees
Mortgage Lender Entity = $750 + $100 NMLS processing fee
Mortgage Broker Entity = $500 + $100 NMLS processing fee
Mortgage Lender Branch = $250 + $20 NMLS processing fee
Mortgage Broker Branch = $250 + $20 NMLS processing fee
Mortgage Loan Originator = $400 + $30 NMLS processing fee
(MLO is for Lender or Broker)
Exempt Entities, Companies, or Branch filings are only subject to the NMLS processing fee.
Other Fees
National Test = $92
State Test (Montana)= $69
* Pre-Licensing Education (20 hours) = $295
* Continuing Education (12 hours) = $149
* Surety Bond = $250 (Entity may obtain to cover all its mortgage loan originators)
Criminal Background Check = $29.25 (NMLS will begin conducting criminal background checks in early 2010, cost of fees associated with this service it not yet known)
* Credit Report = $10
* Estimated cost which may vary. There are multiple providers for this service.
