Montana Origination Reference Guide
- Kacey Olson
Owned by Kacey Olson
Aug 29, 2017
2 min read
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| Citation | Topic | Requirement |
| Mortgage Act / Mont. Code Ann. §32-9-148(3) | Loan Commitment | The loan commitment must include the terms and conditions of the mortgage loan as well as the terms and conditions of the loan commitment, including, but not limited to: (1) the time period during which the loan commitment is irrevocable and may be accepted by the borrower (which may not be less than 7 calendar days from the date of the loan commitment or the date of mailing, whichever is later); (2) the amount and payment terms of the loan commitment fee, along with a statement as to whether the fee is refundable and the terms and conditions necessary to obtain a refund; (3) the expiration date of the loan commitment; (4) conditions that must be met prior to closing; and (5) the terms and conditions, if any, for obtaining a refund of fees for third-party services or arranging for the transfer of third-party service work products to another mortgage lender. The loan commitment must be signed by the lender and the borrower. |
| Mortgage Act / Mont. Code Ann. §32-9-148(3)(c) | Lock-in Agreement | The interest rate lock-in agreement must include: (1) the expiration date of the interest rate lock-in agreement; (2) the principal amount of the mortgage loan, the term of the mortgage loan, and identification of the residential real estate; (3) the initial interest rate and the discount points to be paid; and (4) the amounts and payment terms of the interest rate lock-in, along with a statement as to whether the fee is refundable and the terms and conditions necessary to obtain a refund. |
| Mortgage Act / Mont. Code Ann. §32-9-124(2) | Mortgage Loan Origination Disclosure | Within 3 business days of taking an application, the mortgage loan originator working for a mortgage broker, in addition to other disclosures, and other state and federal laws, must provide to the borrower a written disclosure. |
| Mortgage Act / Mont. Code Ann. §32-9-124(1) | Original Documents | A mortgage lender, broker, servicer, or loan originator may not keep original documents owned by the borrower and submitted in connection to the loan application. |
| Mortgage Act / Mont. Code Ann. §32-9-124(1) | Payment of Third Party Fees | A mortgage lender, broker, servicer, or loan originator may not fail to pay a bona fide third party within 30 days after the recording of the loan closing documents or within 90 days after completion of the bona fide third-party service, whichever is earlier, unless otherwise agreed by the parties. |
| Unfair Trade Practices Act / Mont. Code Ann. §33-18-501 | Right to Choose Insurance Provider | A mortgage lender who solicits insurance must explain to the borrower in writing that the insurance related to the loan may be purchased from an insurer or insurance producer of the borrower's choice, subject only to the lender's right to reasonably reject a given insurer or insurance producer. Compliance with disclosures as to insurance required by truth-in-lending laws or comparable state laws will constitute compliance with this requirement. |
| Mortgage Act / Mont. Code Ann. §32-9-148(2) | Prepayment Penalty Disclosure | A mortgage lender must disclose the terms of any prepayment penalty on the mortgage loan, including the amount of the prepayment penalty or the formula for calculating the prepayment penalty. A mortgage lender must comply with federal laws and rules regarding prepayment penalties. |