Montana Code 32-9-110. Examination requirements for mortgage loan originators
32-9-110. Examination requirements for mortgage loan originators. (1) An individual seeking a mortgage loan originator’s license shall submit to an examination.
Terms Used In Montana Code 32-9-110
- Approved test provider: means any test provider approved by the NMLS. See Montana Code 32-9-103
- Fraud: Intentional deception resulting in injury to another.
- Individual: means a natural person. See Montana Code 32-9-103
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Mortgage: means a consensual interest in real property located in Montana, including improvements, securing a debt evidenced by a mortgage, trust indenture, deed of trust, or other lien on real property. See Montana Code 32-9-103
- Mortgage loan: A loan made by a lender to a borrower for the financing of real property. Source: OCC
- Mortgage loan originator: means an individual who for compensation or gain or in the expectation of compensation or gain:
(i)takes a residential mortgage loan application; or
(ii)offers or negotiates terms of a residential mortgage loan. See Montana Code 32-9-103
- NMLS: means a licensing system developed and maintained by the conference of state bank supervisors and the American association of residential mortgage regulators for the registration and licensing of persons providing nondepository financial services. See Montana Code 32-9-103
- Nontraditional mortgage product: means any mortgage product other than a 30-year, fixed-rate mortgage. See Montana Code 32-9-103
- Person: means an individual, sole proprietorship, corporation, company, limited liability company, partnership, limited liability partnership, trust, or association. See Montana Code 32-9-103
- Registered mortgage loan originator: means an individual who:
(a)meets the definition of mortgage loan originator and is an employee of:
(i)a depository institution;
(ii)a subsidiary that is wholly owned and controlled by a depository institution and regulated by a federal banking agency; or
(iii)an institution regulated by the farm credit administration; and
(b)is registered with and maintains a unique identifier through the NMLS. See Montana Code 32-9-103
- State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See Montana Code 1-1-201
(2)In order to meet the examination requirement referred to in subsection (1), an individual shall pass, in accordance with the standards established under this section, a qualified written exam developed by the NMLS that is administered by an approved test provider.
(3)A written examination may not be treated as a qualified written examination for purposes of this section unless the exam adequately measures the applicant’s knowledge and comprehension in appropriate subject areas, including but not limited to:
(a)ethics;
(b)federal and state laws and regulations pertaining to mortgage origination; and
(c)federal and state laws and regulations pertaining to fraud, consumer protection, the nontraditional mortgage product marketplace, and fair lending issues.
(4)An individual may not be considered to have passed a qualified examination unless the individual achieves an exam score of at least 75%.
(5)An individual may retake a test three consecutive times with each consecutive test being taken at least 30 days after the previous testing date.
(6)An individual who fails three consecutive tests may not take the test for at least 6 months from the date of failing the third test.
(7)A licensed mortgage loan originator who fails to maintain a valid license for a period of 5 years shall retake the test. The 5-year period may not take into account any time during which the person is a registered mortgage loan originator. (See part compiler’s comment regarding contingent suspension.)