Montana Regulatory Update

Montana Regulatory Update

The Montana Department of Administration (“Department”) recently amended its rules related to mortgage license applications and renewals and the recovery of costs related to administrative actions, effective July 17, 2015.

 

MONTANA RULES 2.59.1716, 2.59.1741, AND 2.59.1753

 

An application for initial license under the Montana Mortgage Act submitted to the Department through the Nationwide Mortgage Licensing System (“NMLS”) during the period of November 1 through December 31 is deemed an application for licensure for the next calendar year unless the following conditions are met:

·        An applicant requests expedited processing of the application and issuance of a license for the remainder of the calendar year in which the application is submitted;

·        The application is complete and contains no deficiencies; and

·        The Department has sufficient time and staff resources to accommodate the applicant’s request during the period November 1 through December 31, which coincides with the renewal period for those currently licensed under the Montana Mortgage Act (“Licensee”). 

 

Current Licensees’ renewal applications are given administrative priority over applications for initial licensure.

 

All licenses expire on December 31 regardless of issuance date.  A person whose license has expired may not engage in the activities for which the license was issued.  Reinstatement of an expired license is governed by Montana law.

 

An application for initial license will be deemed abandoned if the applicant fails to provide the documents or information requested by the Department within 60 days of notification to the applicant of the deficiencies.

 

If the 60-day period following notification of deficiencies has not elapsed by December 31, the application is deemed an application for the next calendar year and will be processed without submission of a new application and fee.

 

Except as provided hereafter, the application will be deemed abandoned if the requested documents or information are not provided within the remainder of the 60-day period in the new year.

 

Upon abandonment, the licensing process may be started anew with the submission of a new license application and fee.

 

The 60-day period for providing documents or information requested by the Department applies to persons applying for initial licensure and not to renewal applicants.

 

A Licensee may be ordered to reimburse the Department for the cost in bringing an administrative action against the Licensee.  The costs in bringing such an administrative action will include:

·        Administrative law judge charges;

·        Court reporter fees;

·        Transcription costs as provided by law;

·        Exhibit preparation cost if the exhibit was admitted into evidence at the hearing;

·        Deposition cost if the deposition was used at the hearing;

·        Fees, if any, for service of subpoenas;

·        Witness fees and mileage for the Department’s lay/fact witnesses; and

·        Mileage for the Department’s expert witness if the expert appears personally and testifies at the hearing.

 

The above provisions do not limit the authority of the Department to charge for a special examination performed before a Department decision to initiate a contested case and upon which the decision is based in whole or in part.  The manner of calculating the charge for a special examination is the same as for a regularly scheduled compliance examination as required by law.