Per state law an individual that has not provided a Montana mortgage broker bond and received approval from the Division of Banking and Financial Institutions may not solicit, originate, close, or participate in the making of a mortgage loan on or after July 1, 2010.  The license must now be procured through the Nationwide Mortgage Licensing System (NMLS) as Montana has adopted the model National SAFE MLO Test Component.  The Montana mortgage broker bond is required of any entity that obtains, attempts to obtain, or assists in obtaining a mortgage loan for a borrower from a mortgage lender in return for consideration (§32-9-103).  The law further defines “brokering” as attempting to or assisting in obtaining a mortgage loan by referring a borrower to a mortgage lender or mortgage broker, soliciting or offering to solicit a mortgage loan on behalf of a borrower, or negotiating or offering to negotiate the terms or conditions of a mortgage loan with a mortgage lender on behalf of a borrower. The Montana mortgage broker bond is required for each entity license.  The amount of the required surety bond must be calculated by combining the annual loan production amounts for all persons originating residential mortgage loans and for all business locations of the mortgage broker.  When determining the Montana mortgage broker bond penal sum you must use the following formula:

1.)  $25,000 mortgagee broker bond for a combined annual loan production that does not exceed $50 million a year;
2.)  $50,000 mortgagee broker bond for annual loan production of $50 million but not exceeding $100 million a year; or
3.)  $100,000 mortgage broker bond for annual loan production of more than $100 million a year.

The Montana mortgage broker bond must run to the State and must run first to the benefit of the borrower, then to the benefit of the State and any person who suffers loss by reason of the broker’s violation of any provision of this part or rules adopted under §32-9. The Department shall use the proceeds of the surety bond to reimburse borrowers, the Department, or bona fide third parties who successfully demonstrate a financial loss because of an act of a mortgage broker, mortgage lender, or mortgage loan originator that violates any provision of law. The Montana mortgage broker bond may be canceled by the broker or the corporate surety upon written notice to the department. The cancellation takes effect thirty days after receipt by the Department of notice of cancellation. The cancellation does not affect any liability incurred prior to said cancellation.  Montana surety leaderSurety One, Inc. specializes in the bonding needs of the mortgage loan and services sector.  We underwrite  both the surety and fidelity bond needs of mortgage professionals in ALL fifty states, Puerto Rico and the U.S. Virgin Islands. Visit us at, call (787) 333-0222 or (800) 373-2804, or email us at for a Montana mortgage broker bond application or information on ANY surety need.