The Montana Mortgage Broker Surety Bond is required by the State of Montana Division of Banking and Financial Institutions.
Any business that obtains a mortgage loan for a borrower from a lender in return for consideration is required to file a Montana Mortgage Broker Surety Bond with the Division of Banking and Financial Institutions. According to the National Mortgage Licensing System, attempting to obtain a loan includes:
- Referring a borrower to a mortgage lender or mortgage broker.
- Soliciting or offering to solicit a mortgage loan on behalf of a borrower.
- Negotiating or offering to negotiate the terms or conditions of a mortgage loan with a mortgage lender on behalf of a borrower.
The Montana Mortgage Broker Surety Bond ensures that licensed mortgage brokers will conduct all business in compliance with the Montana Mortgage Act, Montana Code Title 32 Chapter 9 Part 1.The bond also provides protection to the public and financial compensation in case of noncompliance by the mortgage broker. If a claim is filed against the bond, the mortgage broker must give notice to the Division of Banking and Financial Institutions by certified mail or through the National Mortgage Licensing System within 15 days of the mortgage broker obtaining knowledge of the initiation of an investigation.
The required amount of a Montana Mortgage Broker Surety Bond depends on the combined annual loan production amounts for all business locations of the mortgage broker:
- A mortgage business with no prior business history in Montana OR a business history of less than one year in Montana requires a $25,000 surety bond.
- A combined annual loan production that does not exceed $50 million requires a $25,000 surety bond.
- A combined annual loan production between $50 million and $100 million requires a $50,000 surety bond.
- A combined annual loan production of more than $100 million a year requires a $100,000 surety bond.
A Montana Mortgage Broker Surety Bond may be cancelled with written notice to the Division of Banking and Financial Institutions through the NMLS at least 30 days prior to the cancellation date.
License Fees and Requirements:
- Surety bond
- Qualifying Individual
- Criminal and Civil Background Check
- Credit Check
- $600 nonrefundable license fee, including the NMLS processing fee
- Disclosure Questions
- Certificate of Authority/Good Standing Certificate
- MU2 Individual FBI Criminal Background
All fees are required by the obligee, not the Surety Company.
CLICK HERE for more licensing information from the State of Montana Division of Banking and Financial Institutions.
APPLY for your Montana Mortgage Broker Surety Bond today!