32-9-127. Compliance of current mortgage brokers, mortgage lenders, and mortgage loan originator licensees with background check and minimum standards -- renewals.
32-9-127. Compliance of current mortgage brokers, mortgage lenders, and mortgage loan originator licensees with background check and minimum standards -- renewals. (1) Upon application to the nationwide mortgage licensing system and registry by a current licensee for renewal of a mortgage broker, a mortgage lender, or a mortgage loan originator license, the applicant shall furnish information concerning the applicant to the nationwide mortgage and licensing system and registry regarding the following:
(a) fingerprints for submission to the federal bureau of investigation and any governmental agency or entity authorized to receive information for a criminal history background check at the state, federal, and international levels;
(b) legal name, birth date, and social security number for submission to the criminal investigation bureau of the Montana department of justice as authorized for a state criminal history background check; and
(c) a written statement of personal history and experience in a form prescribed by the nationwide mortgage licensing system and registry, including authorization for the nationwide mortgage licensing system and registry to obtain:
(i) a current independent credit report obtained from a consumer reporting agency described in section 603(p) of the Fair Credit Reporting Act, 15 U.S.C. 1681a(p); and
(ii) information related to any administrative, civil, or criminal findings by any governmental jurisdiction.
(2) To reduce the points of contact that the federal bureau of investigation may be required to maintain for purposes of subsection (1), the department may use the nationwide mortgage licensing system and registry as a channeling agent for requesting information from and distributing information to the United States department of justice or other governmental agencies.
(3) To reduce the points of contact that the department may be required to maintain for purposes of subsection (1), the department may use the nationwide mortgage licensing system and registry as a channeling agent for requesting and distributing information to and from any source directed by the department.
(4) Upon application to the nationwide mortgage licensing system and registry by a current licensee for renewal of a mortgage broker, mortgage lender, or mortgage loan originator license, the department shall commence a supplemental investigation of the applicant and may not renew any license if any of the following facts are found:
(a) the applicant has ever had a mortgage broker, mortgage lender, or mortgage loan originator license or the equivalent revoked in any governmental jurisdiction. A subsequent formal vacation of a revocation means that the revocation may not be considered a revocation. The department may by order vacate a revocation of a license and enter an appropriate order.
(b) the applicant has been convicted of or pled guilty or nolo contendere to a felony in a domestic, foreign, or military court during the 7-year period preceding the date of the application for renewal or at any time preceding the date of application if the felony involved an act of fraud, dishonesty, a breach of trust, or money laundering. The pardon of a conviction is not a conviction for the purposes of this subsection (4)(b).
(c) the applicant has failed to demonstrate financial responsibility, character, and general fitness to command the confidence of the community and to warrant a determination that the mortgage broker, mortgage lender, or mortgage loan originator will operate honestly, fairly, and efficiently within the purposes of this section;
(d) the applicant has not met the surety bond or net worth requirement as required pursuant to 32-9-123;
(e) the applicant has not completed the prelicensing education requirement described in 32-9-107;
(f) the applicant has not passed a written test that meets the test requirements described in 32-9-110;
(g) the applicant made a material misstatement of fact or material omission of fact in the application.
(5) The department shall determine that the applicant has demonstrated the qualities of financial responsibility, character, and general fitness referred to in subsection (4)(c) if all other requirements for licensure under this section have been satisfied and the department's investigation does not reveal a specific problem on the applicant's part with respect to subsection (4)(c).
History: En. Sec. 16, Ch. 321, L. 2009.