BEFORE THE DEPARTMENT OF ADMINISTRATION
OF THE STATE OF MONTANA
In the matter of the adoption of New Rule I pertaining to renewal fees for mortgage brokers, mortgage lenders, and mortgage loan originators, and the amendment of ARM 2.59.1708
NOTICE OF PROPOSED ADOPTION AND AMENDMENT
NO PUBLIC HEARING CONTEMPLATED
TO: All Concerned Persons
1. On April 13, 2011, the Department of Administration proposes to adopt and amend the above-stated rules.
2. The Department of Administration will make reasonable accommodations for persons with disabilities who wish to participate in this rulemaking process or need an alternative accessible format of this notice. If you require an accommodation, contact the Department of Administration no later than 5:00 p.m. on April 1, 2011, to advise us of the nature of the accommodation that you need. Please contact Wayne Johnston, Division of Banking and Financial Institutions, P.O. Box 200546, Helena, Montana 59620-0546; telephone (406) 841-2918; TDD (406) 444-1421; facsimile (406) 841-2930; or e-mail to firstname.lastname@example.org.
3. The rule proposed to be adopted provides as follows:
NEW RULE I RENEWAL FEES (1) Licenses issued under Title 32, chapter 9, part 1, MCA, expire December 31. Licensees shall submit their renewal applications by December 1 of each year to assure issuance of the license to qualified renewal applicants by January 1 of the following year. The renewal fees for the license period January 1 through December 31 are:
Mortgage Broker Entity $500.00
Mortgage Broker Branch $250.00
Mortgage Lender Entity $750.00
Mortgage Lender Branch $250.00
Mortgage Loan Originator $400.00
(except as provided in 32-9-117(1)(b), MCA)
AUTH: 32-9-117, 32-9-130, MCA
IMP: 32-9-117, MCA
STATEMENT OF REASONABLE NECESSITY: This rule is being adopted because its original version, ARM 2.59.1729, was unintentionally repealed in December 2010 in MAR Notice No. 2-59-443. There is no change to the renewal fees, which are equivalent to what has been charged previously. Therefore, there is no anticipated increase or decrease in revenue resulting from this rule. There are currently 73 mortgage broker entities, 34 mortgage broker branches, 87 mortgage lender entities, 88 mortgage lender branches, and 718 mortgage loan originators licensed in Montana.
4. The rule as proposed to be amended provides as follows, new matter underlined, deleted matter interlined:
2.59.1708 TABLE FUNDING REQUIRES LICENSURE (1) Any person not exempted from the Montana Mortgage Broker, Mortgage Lender, and Mortgage Loan Originator Licensing Act under 32-9-104, MCA, who closes a mortgage loan naming themselves as the lender and who, within three business days of closing, consummates sale of the mortgage loan note to another party, commonly known as "table funding" as defined in ARM 2.59.1701, must be licensed as a mortgage broker or loan originator.
AUTH: 32-9-130, MCA
IMP: 32-9-103, 32-9-108, MCA
STATEMENT OF REASONABLE NECESSITY: This rule is being changed in order to make it consistent with ARM 2.59.1701(6), which defines table funding as the closing of a loan naming a mortgage broker, mortgage broker's business entity, or mortgage loan originator as the lender on the mortgage loan note, which note is then sold within three business days of closing to another party. In order to make ARM 2.59.1708 consistent with ARM 2.59.1701(6), "business" day is being added to ARM 2.59.1708. This consistency is important because in the absence of it, one would have to assume that two different times are meant which is not, in fact, the case.
5. Concerned persons may present their data, views, or arguments concerning the proposed action to Kelly O'Sullivan, Legal Counsel, Division of Banking and Financial Institutions, P.O. Box 200546, Helena, Montana 59620-0546; faxed to the office at (406) 841-2930; or e-mailed to email@example.com; and must be received no later than 5:00 p.m., April 11, 2011.
6. If persons who are directly affected by the proposed action wish to express their data, views, or arguments orally or in writing at a public hearing, they must make written request for a hearing and submit this request along with any written comments to the person listed in 5 above at the above address no later than 5:00 p.m., April 11, 2011.
7. If the Division of Banking and Financial Institutions receives requests for a public hearing on the proposed action from either 10% or 25, whichever is less, of the persons directly affected by the proposed action; from the appropriate administrative rule review committee of the Legislature; from a governmental subdivision or agency; or from an association having not less than 25 members who will be directly affected, a hearing will be held at a later date. Notice of the hearing will be published in the Montana Administrative Register. Ten percent of those directly affected has been determined to be 25 persons based on the number of licensed mortgage brokers, mortgage lenders, and mortgage loan originators.
8. An electronic copy of this Proposal Notice is available through the department's web site at http://doa.mt.gov/administrativerules.mcpx. The department strives to make the electronic copy of the notice conform to the official version of the notice, as printed in the Montana Administrative Register, but advises all concerned persons that if a discrepancy exists between the official printed text of the notice and the electronic version of the notice, only the official printed text will be considered. In addition, although the department works to keep its web site accessible at all times, concerned persons should be aware that the web site may be unavailable during some periods, due to system maintenance or technical problems.
9. The Division of Banking and Financial Institutions maintains a list of interested persons who wish to receive notices of rulemaking actions proposed by this division. Persons who wish to have their name added to the mailing list shall make a written request that includes the name and mailing address and e-mail address of the person to receive notices and specifies that the person wishes to receive notices regarding division rulemaking actions. Notices will be sent by e-mail unless a mailing preference is noted in the request. Such written requests may be mailed or delivered to Wayne Johnston, Division of Banking and Financial Institutions, 301 S. Park, Ste. 316, P.O. Box 200546, Helena, Montana 59620-0546; faxed to the office at (406) 841-2930; e-mailed to firstname.lastname@example.org; or may be made by completing a request form at any rules hearing held by the department.
10. The bill sponsor contact requirements of 2-4-302, MCA, do not apply.
By: /s/ Janet R. Kelly By: /s/ Michael P. Manion
Janet R. Kelly, Director Michael P. Manion, Rule Reviewer
Department of Administration Department of Administration
Certified to the Secretary of State February 28, 2011.