Mortgage and Consumer Finance

Access information and resources for individuals involved in mortgage origination in Montana.

Mortgage Loan Originator

Access information and resources for individuals involved in mortgage origination in Montana.

Montana Mortgage Brokers, Lender, and Servicers

Licensing

A consumer loan license is needed to engage in business as defined in the Montana Consumer Loan Act (Section 32-5-101, MCA).

The Montana Division of Banking and Financial Institutions (Division) does all of its licensing through the Nationwide Multistate Licensing System (NMLS).

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

• NMLS Navigation
• Help with a company account
• Montana State Licensing Requirements - Scroll down to the Checklist Compiler, find Montana, then select Consumer Loan License under Company.

Forms

• Montana State Licensing Requirements
  • NMLS Licensing Checklists, Requirements, and Fees
• Annual Report
  • Annual Report - The Annual Report must be filed on or before February 15 of the following year (IMPORTANT: Save form to your PC and open in Adobe Reader or Acrobat. Form will not work properly if opened within internet browser.) Please read the Annual Report Filing Instructions before completing the report.
• Document Samples/Fee Disclosure
  • Please upload into NMLS samples of any documents/contracts provided to Montana consumers. Please also type up on the company letterhead a list of fees as listed in ARM 2.59.302 Fee Disclosures - Computation of Interest. Or you may use this sample disclosure form.

Servicing Consumer Loans

In response to the Servicers of Montana Consumer Loans Memorandum (Memo) that was released Feb. 23, 2016, the Division offers this clarification:

1. The Montana Consumer Loan Act (Act) does not apply to the following:
   • Utility providers
   • Service providers (doctors, dentists, hospitals, chiropractors, etc.)
   • Estates
2. Servicers of loans originated under the Act must be licensed under the Act in order to collect the loan.
3. The Memo applies only to loans originated under the Act, not to loans originated by financial institutions (i.e. banks and credit unions).

Are Consumer Loan Companies Permitted to have Open-ended Loans

Open-end loans are subject to the Montana Consumer Loan Act (Act), assuming they meet the definition of a consumer loan (Mont. Code Ann. § 32-5-102(2)). As such, an open-end loan must comply with Mont. Code Ann. § 32-5-301 and 32-5-302. Please note that credit cards issued by a bank, building and loan association, savings and loan association, trust company or credit union are exempt from the Act under Mont. Code Ann. § 32-5-103(5). If a credit card were issued by some entity other than other described in Mont. Code Ann. § 32-5-103(5), it would be subject to the Act.

Reporting Requirements

• Annual Report
  • The Annual Report must be filed on or before February 15th each year. The report can be found on the Forms page.
• Financial Statements
  • Unaudited (compiled) financial statements must be submitted in NMLS within 90 days of the entities fiscal year end.
• Secretary of State Annual Report
  • All consumer loans licensees are required to register their business with the Montana Secretary of State (SOS). An Annual Report is required to keep this registration. Please visit the Montana SOS website for more details.

New Legislation

• Non-depository Legislation
• Summary of changes to the Montana Consumer Loan Act

Statute

• Montana Consumer Loan Act - Consumer Loan Businesses

Administrative Rules

• Consumer Loan Administrative Rules

Memorandums

• Memorandum: Servicing of Montana Consumer Loans - February 23, 2016
• Memorandum: I-164 Interest Calculations - March 21, 2011
• License Renewal & Ballot Initiative No. 164 & Questionnaire - December 1, 2010
• License Renewal & Ballot Initiative No. 164 - November 3, 2010

Administrative Rule Notices

• Administrative Rule Notices

Licensing

• A sales finance license is needed to engage in business as defined in the Montana Retail Installment Sales Act(Section 31-1-201, MCA).
• The Montana Division of Banking and Financial Institutions (Division) does all of its licensing through the Nationwide Multistate Licensing System (NMLS).
• For instructions on how to use NMLS please go to the following links on the NMLS website:
• NMLS Navigation
• Help with a company account.
• Montana State Licensing Requirements: Licensing Requirements

New Legislation

• Non-depository Legislation
• Summary of Changes to the Montana Retail Installment Sales Act

Statute and Administrative Rules

• Montana Retail Installment Sales Act
• Administrative Rules

Memorandums and Legal Opinions

• Legal Opinion: Usury - Retail Installment Sales - 01/30/24
• Legal Opinion: Delinquency Charge
• Memorandum: License Renewal and Ballot Initiative No. 164 - 11/03/10

Administrative Rule Notices

• Administrative Rule Notices

Licensing

A escrow license is required to engage in business as defined in the Regulation of Escrow Businesses Act (Section 32-7-101, MCA). The Regulation of Escrow Businesses Act provides that the business practices of the escrow industry are fair and orderly among the members of the escrow industry, with due regard to the ultimate consumers in this important area of property protection.

The Montana Division of Banking and Financial Institutions (Division) does all of its licensing through the Nationwide Multistate Licensing System (NMLS).

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

• NMLS Navigation
• Help with a company account
• Montana State Licensing Requirements
• Montana Mortgage Lenders and Servicers Certificate of Authorization to Examine Escrow Accounts

Reporting Requirements

• Annual Report
  • The Annual Financial Statement and Escrow Activities Report must be filed with the Division by April 30th. The report can be found on the Forms page.
• Secretary of State Annual Report
  • All escrow licensees are required to register their business with the Montana Secretary of State (SOS). An Annual Report is required to keep this registration. Please visit the Montana SOS website for more details.

Memorandums

• Escrow Report Memo 2/23/21

New Legislation

• Non-depository Legislation
• Summary of changes to the Escrow Business Act

Statutes and Administrative Rules

• Regulation of Escrow Businesses Act
• Administrative Rules

Administrative Rule Notices

• Administrative Rule Notices page

Licensing

There are currently no licensed payday lenders in the State of Montana.

A deferred deposit loan license is needed to engage in business as defined in the Montana Deferred Deposit Loan Act (Section 31-1-701, MCA). The Montana Deferred Deposit Loan Act was passed by the Montana State Legislature through House Bill 526 during the 1999 Regular Session. House Bill 526 provided for the licensure, examination and regulation of deferred deposit loan businesses operating in Montana. According to Montana statute on deferred deposit, a deferred deposit lender may not charge an annual interest rate that exceeds 36%.

**Memorandum: License Renewal and Ballot Initiative Number 164**

The Montana Division of Banking and Financial Institutions (Division) does all of its licensing through the Nationwide Mortgage Licensing System (NMLS).

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

• NMLS Navigation
• For help with a company account
• For help with an individual account
• Montana State Licensing Requirements

Forms

• Find the full list of deferred deposit forms.

Statute

• Montana Deferred Deposit Loan Act

Administrative Rules

• Deferred Deposit Loan Administrative Rules
• Administrative Rule Notices

MONTANA TITLE LOAN LICENSING

Repeal of Montana Title Loan Act

Please be advised the Montana Title Loan Act was repealed in House Bill 118 by the Montana State Legislature during the 2013 Regular Session. The repeal of the Title Loan Act was effective on December 31, 2013.

If you have any questions regarding the repeal of the Montana Title Loan Act, please contact Chris Romano, Mortgage & Consumer Finance Examination Manager, at (406) 841-2928 or cromano@mt.gov.

Montana Does Not Regulate Money Transmitters

The Montana Division of Banking and Financial Institutions (Division) does not regulate money transmitters. However, this does not mean that your company – a money transmitter – doesn’t need any licenses in Montana unless the only thing you are doing is money transmission. Which, inconveniently, is not defined under Montana law.

Montana does, however, license consumer finance companies and anyone who collects on a consumer loan. Montana also licenses escrow companies. Montana charters banks and credit unions. Montana licenses retail sales finance companies and all sorts of mortgage entities. Please reference the information found at NMLS to determine, hopefully with the assistance of your own legal counsel as the Division cannot act as private legal counsel, what licenses you may need and then apply for any such license using the NMLS.

Article: The Challenge of Being the Only State Not Regulating Money Transmitters

Non Depository News - April 12, 2023

The Montana Division of Banking does not regulate money transmitters.  BUT, in case you read that sentence and breathed a great sigh of relief, that absolutely does not mean that your company – a money transmitter – doesn’t need any licenses in Montana unless the only thing you are doing is money transmission.  Which, inconveniently, is not defined under Montana law. 

Montana does, however, license consumer finance companies and anyone who collects on a consumer loan.  Montana also licenses escrow companies.  Montana charters banks and credit unions.  Montana licenses retail sales finance companies and all sorts of mortgage entities. 

Montana recently put out a notice on its website requesting that money transmitters submit detailed business plans and money flow charts because we get SO MANY requests wanting to know whether companies need a license to do what they are doing, and if so, which license.  The reality is that without a detailed business plan and a money flow chart, we really can’t answer that question and so our licensing team was trying to be proactive by requesting this information, but our legal team recognizes that we don’t really have authority to request much of anything from a company that isn’t licensed so we have withdrawn that request.  Going forward, please reference the information found at NMLS to determine, hopefully with the assistance of your own legal counsel as the Division cannot act as private legal counsel, what licenses you may need and then apply for any such license using the NMLS.

Access information and resources for exempt bona fide not-for-profit entities in Montana, including a list of exempt entities and a link to the exemption form.

Bona Fide Not-For-Profit Entities

Access information and resources regarding annual license renewal.

Annual License Renewals

Consumer Loan

Forms can be found on the Nationwide Mortgage Licensing Service website and elsewhere on this page.

Montana State Licensing Requirements

Annual Report

Annual Report - The Annual Report must be filed on or before February 15 (Important: Save form to your PC and open in Adobe Reader or Acrobat. Form will not work properly if opened within internet browser.) Please read the Annual Report Filing Instructions before completing the report.

Document Samples/Fee Disclosure

Please upload into NMLS samples of any documents/contracts provided to Montana consumers. Please also type up on the company letterhead a list of Fee Disclosures. Or you may use this Sample Disclosure Statement Form.

Deferred Deposit

• Consumer Information Pamphlet
• Annual Report Form

Escrow

• Annual Financial Statement and Escrow Activities Report (Due April 30th)
• Annual Escrow Report Memorandum Regarding Financial Statements

Access a list of Frequently Asked Questions related to mortgage and consumer finance licensing in Montana.

FAQs