The Montana Mortgage Act introduced new requirements for mortgage servicers in the state of Montana. Effective as of October 1, 2011, mortgage servicers are required to be bonded. Previously, mortgage brokers were required to provide surety bonds, but now both servicers and brokers must maintain a surety bond for each entity license.
How much will my Montana mortgage loan servicer bond cost?
Montana’s Mortgage Act requires mortgage servicers to post a $100,000 surety bond. These bonds are subject to underwriting, meaning the amount you pay is determined by your personal financial history.
Regardless of your credit, our bond professionals can get you bonded at the lowest rate available to meet your specific needs. For an accurate estimation of how much you could pay for your mortgage bond, contact one of our surety bond professionals at 1 (800) 308-4358.
Why do mortgage servicers need a bond in Montana?
These bonds offer reimbursement to the Division of Banking & Financial Institutions in the event of insolvency, bankruptcy or liquidation of the principal (mortgage loan servicer). If the principal violates the terms of the bond, a valid claim can be filed against this bond. The surety will cover damages up to the penal sum of the bond, but the principal must reimburse the surety for all damages paid out in a timely manner.
How long will Montana mortgage bonds remain in effect?
All bonds will remain effective unless canceled by the surety. If the surety chooses to cancel a bond, a written cancellation notice must be mailed to the Division of Banking & Financial Services 30 days prior to the given cancellation date.
How to become a mortgage loan servicer in Montana?
To legally conduct mortgage loan servicer business, you must be licensed. License applications must be completed in full and sent to the Department of Financial Services. Prior to applying, applicants must complete:
- 20 hours of Nationwide Mortgage Licensing System-Approved pre-licensure Education courses
- Passing results on both the National and Montana State components of the SAFE Test OR Passing results on both the National and Stand-alone UST components of the SAFE Test OR Passing results on the National Test Component with Uniform State Content
Once those prerequisites are completed, applicants must include the following with their application:
- $36.25 FBI Criminal Background Check
- $30 Processing Fee
- $400 Registration Fee
- $15 Credit Report
- Surety Bond
Call 1 (800) 308-4358 to contact a surety expert who will walk you through your bonding process step-by-step.