32-9-166. Reports. (1) A licensee shall file a written report with the department through the NMLS within 30 business days of any material change to the information provided in a licensee’s application.

Terms Used In Montana Code 32-9-166

  • Application: means a request, in any form, for an offer of residential mortgage loan terms or a response to a solicitation of an offer of residential mortgage loan terms and includes the information about the borrower that is customary or necessary in a decision on whether to make such an offer. See Montana Code 32-9-103
  • Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
  • Borrower: means a person seeking a residential mortgage loan or an obligor on a residential mortgage loan. See Montana Code 32-9-103
  • Complaint: A written statement by the plaintiff stating the wrongs allegedly committed by the defendant.
  • Control: means the power, directly or indirectly, to direct the management or policies of an entity, whether through ownership of securities, by contract, or otherwise. See Montana Code 32-9-103
  • Conviction: A judgement of guilt against a criminal defendant.
  • Department: means the department of administration provided for in 2-15-1001, acting through its division of banking and financial institutions. See Montana Code 32-9-103
  • Entity: means a business organization, including a sole proprietorship. See Montana Code 32-9-103
  • Fraud: Intentional deception resulting in injury to another.
  • Independent contractor: means an individual who performs duties other than at the direction of and subject to the supervision and instruction of another individual who is licensed and registered in accordance with this part or who is not required to be licensed in accordance with 32-9-104(1)(b), (1)(d), or (1)(g). See Montana Code 32-9-103
  • Licensee: means a person authorized pursuant to this part to engage in activities regulated by this part. 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
  • Person: means an individual, sole proprietorship, corporation, company, limited liability company, partnership, limited liability partnership, trust, or association. 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
  • United States: includes the District of Columbia and the territories. See Montana Code 1-1-201

(2)A licensee shall file a written report with the department within 1 business day after the licensee has reason to know of the occurrence of any of the following:

(a)the filing of a petition by or against the licensee under the United States Bankruptcy Code, 11 U.S.C. § 101, et seq., for bankruptcy or reorganization;

(b)the filing of a petition by or against the licensee for receivership, the commencement of any other judicial or administrative proceeding for the licensee’s dissolution or reorganization, or the making of a general assignment for the benefit of the licensee’s creditors;

(c)the licensee’s decision to cease doing business for any reason;

(d)the commencement of a proceeding to revoke or suspend the licensee’s license in a state in which the licensee engages in business or is licensed;

(e)the cancellation or other impairment of the licensee’s or an exempt company’s bond; or

(f)a felony conviction of the licensee, employee of a licensee, or control person of a licensee.

(3)A licensee shall file a written report with the department through the NMLS within 15 business days after the licensee has reason to know of the occurrence of any of the following:

(a)fraud, theft, or conversion by a borrower against the licensee;

(b)fraud, theft, or conversion by a licensee;

(c)fraud, theft, or conversion by an employee or independent contractor of a licensee;

(d)violation of a provision of 32-9-124;

(e)the discharge of any employee or termination of an independent contractor for dishonest or fraudulent acts;

(f)any administrative, civil, or criminal action initiated against the licensee or any of its control persons by any government entity; or

(g)a cybersecurity incident that affects the licensee’s ability to do business or involves access or potential access to a customer’s personal information.

(4)(a) In the absence of malice, fraud, or bad faith, a person may not be subjected to civil liability arising from the filing of a complaint with the department or furnishing of other information required by this section or required by the department under the authority granted in this section.

(b)In the absence of malice, fraud, or bad faith, a civil cause of action of any nature may not be brought against a person for any information:

(i)relating to suspected prohibited acts and furnished to or received from law enforcement officials, their agents, or employees or furnished to or received from other regulatory or licensing authorities;

(ii)furnished to or received from other persons subject to the provisions of this part; or

(iii)furnished in complaints filed with the department.

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