Effective October 1, 2019, the Montana Mortgage Act is amended to include the following:
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Subject to certain exceptions:
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For approved servicers by a government sponsored enterprise (GSE), a requirement that it meet the highest standard for which it is approved for liquidity, operating reserves, and tangible net worth.
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For mortgage servicers with portfolios of only non-GSE loans, a requirement to maintain a minimum tangible net worth ($1 million net worth or a $1 million surety bond).
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For mortgage services with portfolio of non--GSE loans, a requirement to maintain liquidity, including operating reserves, of 0.00035 times the unpaid principal balance of the portfolio.
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A $250,000 minimum net worth requirement for mortgage lenders.
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Authority to investigate and examine "service providers," to provide information about service providers to a licensee, and to obtain penalties or restitution from service providers. "Service providers" are persons who perform activities relating to the business of mortgage origination, lending, or servicing on behalf of a licensee. These activities include: providing data processing services; activities in the support of residential mortgage origination, lending, or servicing, and internet-related services (web services, processing electronic borrower payments, developing and maintaining mobile applications, system and software development and maintenance, and security monitoring). "Activities relating to the business of mortgage origination, lending, or servicing" do not include providing an interactive computer service or a general audience internet or communications platform, except to the extent that the service or platform is specially designed or adapted for the business of mortgage origination, lending, or servicing.
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For mortgage brokers or lenders, the ability for a designated manager to be responsible for more than one location.
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Revised surety bond requirements for mortgage servicers, calculated on the mortgage servicer's total unpaid balance of residential mortgage loans as of December 31, ranging from $75,000 to $350,000, depending on the amount of the unpaid principal balance of residential mortgage loans.
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Requiring mortgage brokers, mortgage lenders, mortgage servicers, and mortgage loan originators to provide the 15-day notice of an investigation or the entry of a judgment in a criminal or civil action via the NMLS (versus via certified mail).
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Requiring mortgage servicers to update the current schedule of costs and fees as often as such schedule is amended.
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Removes an affirmative obligation on mortgage servicers, at the time it accepts assignment of servicing rights for a mortgage loan, to disclose to the borrower a schedule of costs and fees.
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Permitting the Department to comply with service of process by methods by common courier with tracking capability.
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Expressly authorizing the Department to adopt regulations regarding: mortgage servicer capital requirements, supervisory requirements for designated managers, false, deceptive, and misleading advertising, and internet and electronic advertising.
