Montana Amends Administrative Rules Affecting Multiple Licensees

The Montana Department of Administration (Department) recently published Montana Administrative Register Notice 2-59-571 (Notice) which amends multiple provisions affecting consumer loan lenders, mortgage lenders and brokers, escrow business licensees, and mortgage servicers.  These changes are effective immediately.

Among other things, the Notice does the following:

• Moves the due date for a consumer loan licensee’s annual report from April 15 to February 15.
• Updates several references to NMLS checklists and forms to reflect the most current iteration.
• Adds new definitions for “breach of trust” and “dishonesty” to the Montana Mortgage Act.
  • The Department has referenced the FDIC’s definitions of “breach of trust” and “dishonesty” in the FDIC Statement of Policy for Section 19 of the Federal Department of Insurance Act, December 11, 2012, in the past. However, the Department felt it important to define these terms in the Montana Mortgage Act because a person’s license may be denied based on these terms.
  • The Notice defines “breach of trust” as (a) a wrongful act, use, misappropriation, or omission with respect to any property or fund that has been committed to a person in a fiduciary or official capacity; or (b) the misuse of a person’s official or fiduciary position to engage in a wrongful act, use, misappropriation, or omission.
  • The Notice defines “dishonesty” as (a) to cheat or defraud directly or indirectly; (b) to cheat or defraud for monetary gain or its equivalent; or (c) to wrongfully take property belonging to another in violation of any criminal statute. Dishonesty includes acts involving want of integrity, lack of probity, or a disposition to distort, cheat, or act deceitfully or fraudulently, and may include crimes which federal, state, or local laws define as dishonest.
• Reduces mortgage license renewal fees by 75% for 2019 only.
  • According to the Notice, the Department does not intend to permanently decrease renewal fees.

The entire Notice can be found here.