Mortgage Loan Originators

Mortgage Loan Originators

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The Montana mortgage loan originator license is for any residential mortgage loan originator, unless exempt under 32-9-104 Montana Mortgage Act - Proof of Exemption. Loan Originators are required to be sponsored by a MT-licensed company or branch. MLOs may work remotely.

The Montana Division of Banking and Financial Institutions does all of its licensing through the Nationwide Multistate Licensing System (NMLS). A licensing decision is usually made on an MLO application within 10 days.

For instructions on how to use NMLS please go to the following links on the NMLS website:

Forms and licensing requirements can be found on the NMLS website and on the Banking Division Forms page.

  • The Montana Division does not issue paper licenses.
  • To verify licensure of a financial services provider, visit the NMLS Consumer Access website.

The Montana Division of Banking and Financial Institutions has adopted the National SAFE MLO Test Component with uniform state content effective July 1, 2013. Montana is the 30th state agency that no longer requires a second state-specific test component to be taken by mortgage loan originators (MLOs) seeking licensure with their state agencies.

To schedule a test appointment, you can:

  • Login to NMLS and navigate to the Manage Test Appointments page
  • Or go to the Prometic Exams webpage
  • Or call Prometric at 1 (877) 671-6657

Find a Test Center:

All education is scheduled through NMLS.

Pre-licensure Education:

All new loan originator applicants must first complete 20 hours of pre-licensure education (PE) plus 2 hours of Montana specific education before they can apply for a Montana license through NMLS.

As of 5/03/2023, here are a few course providers who offer a 20-hour Montana Comprehensive course: 20-hour SAFE PE Course; OnCourse Learning; Montana Educators and Compliance - NMLS License Montana; OnCourse Learning. The Montana Division of Banking does not endorse or recommend any specific course provider. Any course provider on the NMLS-approved list can be used. Not all course providers offer Montana-specific education.

Continuing Education:

All licensed originators must take 8 hours of continuing education (CE) every year in order to have their licensed renewed for the following year. There is no MT-specific course required for CE. The SAFE Act stipulates that a state-licensed MLO "“"may not take the same approved course in the same or successive years to meet the annual requirements for continuing education." "Successive years" means two years in a row.

If you are returning to the industry, the application process for a new license requires you to satisfy any CE deficiency for the last year in which you were licensed. Only the courses listed in the Late CE Catalog (and no others), may be used to make-up past CE requirements.

MCA 32-9-107. Prelicensing education requirements for mortgage loan originators.
  1. An individual seeking a mortgage loan originator's license shall complete at least 20 hours of approved education courses, which must include at least:
    1. 3 hours of training on federal law and regulations;
    2. 3 hours of training in ethics, including instruction on fraud, consumer protection, and fair lending issues; and
    3. 2 hours of training related to lending standards for the nontraditional mortgage product marketplace.
  2. In addition to the training required in subsection (1), the department may require by rule that applicants complete additional hours of training that are specific to Montana residential mortgage statutes and rules.
  3. The prelicensing education courses that comply with the requirements of subsection (1) and that are approved by the NMLS for any other state must be accepted with respect to the completion of prelicensing education requirements in Montana.
MCA 32-9-118. Continuing education requirements for mortgage loan originators.
  1. All mortgage loan originators shall complete and submit to the NMLS evidence of at least 8 hours of continuing education every year at the time they submit their license renewal applications. The 8 hours of continuing education must be obtained in approved education courses.
  2. The 8 hours of education must include at least:
    1. 3 hours of training on federal laws and regulations;
    2. 2 hours of training in ethics, including instruction on fraud prevention, consumer protection, and fair lending issues; and
    3. 2 hours of training related to lending standards for the nontraditional mortgage product marketplace.
  3. A person who has successfully completed the education requirements that comply with the requirements of subsections (1) and (2) and that are approved by the NMLS for any other state must be given credit toward completion of continuing education requirements in Montana.
  4. Except as provided in subsection (6), a licensed mortgage loan originator may receive credit for a continuing education course only in the year in which the course is taken and may not take the same approved course in the same or successive years to meet the annual requirements for continuing education.
  5. A licensed mortgage loan originator who is an approved instructor of an approved continuing education course may receive credit for the licensed mortgage loan originator's own annual continuing education requirement at the rate of 2 hours credit for every 1 hour taught.
  6. A licensed mortgage loan originator who subsequently becomes unlicensed shall complete the continuing education requirements for the last year in which the license was held prior to issuance of a new or renewed license. The continuing education requirements of this subsection are not subject to the provision of subsection (4) that credit may be given only in the year a course is taken.

Pre-licensure Education Expiration Policy - PE credits expire after three years of being unlicensed/unregistered. Please read the policy for more details.

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.

Temporary Authority to Operate (TAO) is a section of the SAFE Act which allows applicants of the mortgage loan originator license who meet certain criteria the authority to act as a mortgage loan originator (MLO) for a period while the State reviews their application.

Background

The Economic Growth, Regulatory Relief, and Consumer Protection Act (S. 2155 or the amendments), which was signed into law on May 24, 2018, adds a new section to the federal SAFE Act (12 U.S.C. 5101 et seq.) entitled “Employment Transition of Loan Originators.” These amendments became effective November 24, 2019.

The amendments allow applicants of the mortgage loan originator license who meet certain criteria the authority to act as a mortgage loan originator (MLO) for a period while the State reviews their application. The purpose of the amendments is to allow MLOs who are changing employment from a depository institution to a state-licensed mortgage company or are already state-licensed and are seeking licensure in another state to continue working while they complete state-specific requirements such as testing or education.

Eligibility

To be eligible for temporary authority (TA), MLOs must be:

  • employed by a state-licensed mortgage company in the application-state, and
  • either:
    1. registered in NMLS as an MLO continuously during the one-year period preceding the application submission; or
    2. licensed as an MLO continuously during the 30-day period preceding the date of application.
Disqualification

An MLO is disqualified from TA if they have:

  • had an MLO license application denied or an MLO license revoked or suspended in any jurisdiction;
  • been subject to, or served with, a cease and desist order; or
  • been convicted of a misdemeanor or felony that would preclude licensure under the law of the application state.

Length of Temporary Authority

Temporary Authority begins on the date an eligible MLO submits a license application with the required background check information, authorization for a credit report, and sponsorship, assuming there is no disqualifying event. It ends when the earliest of the following occurs:

  • the MLO withdraws the application,
  • the MLO loses sponsorship
  • the state denies or issues a notice of intent to deny the application,
  • the state grants the license, or
  • 120 days after the application submission if the application is listed on NMLS as incomplete.
How to Obtain Temporary Authority

Temporary Authority is automatically granted when all the conditions are met in a MLO application. There is not a separate application or application process to obtain TA. The application must include:

  • completed Individual Licensing Form (MU4) which contains personal history and experience,
  • explanation and supporting documentation uploads for any “Yes” answer to a disclosure question,
  • the receipt of a criminal history record information check from the FBI,
  • authorization for a credit report to be obtained,
  • Worker Classification, and
  • a request for sponsorship from the MLO’s employer.

The TA applicant has 120 days to complete the application by submitting:

  • any state-specific document required as part of an MLO license application in the Application State,
  • SAFE Act Test, and
  • Pre-licensure educations requirements.
More Information

For more information, please see the NMLS’s Temporary Authority FAQs.

  • Every licensee must renew their license every year through NMLS. Failure to renew will result in termination of the license. Renewal runs from November through December. More information is on our renewal page.
  • In order to request renewal, MLOs must complete 8 hours of Continuing Education (CE). There is no Montana-specific CE required. CE is not required if the MLO completed Pre-licensure Education (PE) the same year.
  • A new credit report is required at renewal. A credit report that was authorized within the last 30 days is acceptable. Credit freezes must be lifted in order for NMLS to pull credit. Renewal will not be accepted until the freeze is lifted and a credit report is received.
  • Montana requires a new criminal background check at renewal every three years. The last time this was required was 2017.
  • Licenses in inactive, conditional, and deficient status can be renewed in that status.
  • All license items must be cleared before renewal will be accepted.
  • Late renewal runs from January 1st to February 28th. An extra $250 is charged for a late renewal.

The Montana Mortgage Act allows licensed MLOs to work remotely, provided certain conditions are met. Notably, employees and independent contractors may not meet with the public at an unlicensed personal residence. Additional conditions related to advertising, business record storage security, and supervision are outlined within statute. Remote workers must still be sponsored by a licensed location and under the supervision of a designated manager. Retail branch locations are still required to hold a branch license.

The Division holds the right to deny the license of anyone who does not meet financial responsibility standards.

MCA 32-9-120. Denial of mortgage broker, mortgage lender, mortgage servicer, or mortgage loan originator license application or license renewal.

  1. The department may not issue or renew any mortgage broker, mortgage lender, mortgage servicer, or mortgage loan originator license if any of the following facts are found during the application procedure:
    1. the applicant has ever had a mortgage loan originator license or an equivalent license revoked in any governmental jurisdiction. A subsequent formal vacation of a revocation means that the revocation may not be considered a revocation. The department may by order vacate a revocation of a license and enter an appropriate order.
    2. the applicant has been convicted of or pled guilty or nolo contendere to a felony in a domestic, foreign, or military court during the 7-year period preceding the date of the application for licensing or renewal or at any time preceding the date of application if the felony involved an act of fraud, dishonesty, a breach of trust, or money laundering. The pardon or expungement of a conviction is not a conviction for the purposes of this subsection (1)(b). When determining the eligibility of the applicant for licensure under subsection (1)(c) or this subsection (1)(b), the department may consider the underlying crime, facts, or circumstances of a pardoned or expunged felony conviction.
    3. the applicant has failed to demonstrate financial responsibility, character, and general fitness to command the confidence of the community and to warrant a determination that the mortgage broker, mortgage lender, mortgage servicer, or mortgage loan originator will operate honestly, fairly, and efficiently within the purposes of this section;
    4. the applicant has not provided and maintained the surety bond as required pursuant to 32-9-123;
    5. the applicant has not completed the prelicensing education requirement described in 32-9-107;
    6. the applicant has not passed a written test that meets the test requirements described in 32-9-110;
    7. the applicant made a material misstatement of fact or material omission of fact in the application; or
    8. the applicant has been found to have violated:
    9. any rule of conduct for persons taking the mortgage loan originator national or state test under the federal Secure and Fair Enforcement for Mortgage Licensing Act; or
    10. the nationwide multistate licensing system industry terms of use as they pertain to enrolling, scheduling, or taking the mortgage loan originator national or state test under the Secure and Fair Enforcement for Mortgage Licensing Act.
  2. The department may consider an application abandoned if an applicant fails to provide or respond to a request for additional information within the time period specified by the department by rule.
  3. For purposes of subsection (1)(b), a pardoned or expunged felony conviction does not necessitate denial of the license application. The department may consider the underlying crime, facts, or circumstances of a pardoned or expunged felony conviction when determining the eligibility of an applicant for licensure under subsection (1)(b) or (1)(c). Whether a particular crime is classified as a felony must be determined by the law of the jurisdiction in which an individual is convicted.

The Montana Division of Banking and Financial Institutions does not provide no-action or opinion letters regarding licensing. We ask individuals to consult with their own legal counsel to determine if a license or charter is needed.