Montana Code 32-9-104. Exemptions — proof of exemption
32-9-104. Exemptions — proof of exemption. (1) The provisions of this part do not apply to:
Terms Used In Montana Code 32-9-104
- Bona fide not-for-profit entity: means an entity that:
(a)maintains tax-exempt status under section 501(c)(3) or 501(c)(4) of the Internal Revenue Code, 26 U. See Montana Code 32-9-103
- Borrower: means a person seeking a residential mortgage loan or an obligor on a residential mortgage loan. See Montana Code 32-9-103
- Department: means the department of administration provided for in 2-15-1001, acting through its division of banking and financial institutions. See Montana Code 32-9-103
- Entity: means a business organization, including a sole proprietorship. See Montana Code 32-9-103
- Housing finance agency: includes the Montana board of housing provided for in 2-15-1814. See Montana Code 32-9-103
- Individual: means a natural person. See Montana Code 32-9-103
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Mortgage: means a consensual interest in real property located in Montana, including improvements, securing a debt evidenced by a mortgage, trust indenture, deed of trust, or other lien on real property. See Montana Code 32-9-103
- Mortgage broker: means an entity that obtains, attempts to obtain, or assists in obtaining a mortgage loan for a borrower from a mortgage lender in return for consideration or in anticipation of consideration or holds itself out as being able to assist a person in obtaining a mortgage loan. See Montana Code 32-9-103
- Mortgage lender: means an entity that closes a residential mortgage loan, advances funds, offers to advance funds, commits to advancing funds for a mortgage loan applicant, or holds itself out as being able to perform any of those functions. See Montana Code 32-9-103
- Mortgage loan: A loan made by a lender to a borrower for the financing of real property. Source: OCC
- Mortgage loan originator: means an individual who for compensation or gain or in the expectation of compensation or gain:
(i)takes a residential mortgage loan application; or
(ii)offers or negotiates terms of a residential mortgage loan. See Montana Code 32-9-103
- Person: means an individual, sole proprietorship, corporation, company, limited liability company, partnership, limited liability partnership, trust, or association. See Montana Code 32-9-103
- Real estate brokerage activities: means activities that involve offering or providing real estate brokerage services to the public, including:
(a)acting as a real estate salesperson or real estate broker for a buyer, seller, lessor, or lessee of real property;
(b)bringing together parties interested in the sale, purchase, lease, rental, or exchange of real property;
(c)negotiating, on behalf of any party, any portion of a contract relating to the sale, purchase, lease, rental, or exchange of real property other than in connection with providing financing with respect to the transaction;
(d)engaging in any activity for which a person is required to be licensed as a real estate salesperson or real estate broker under Montana law; or
(e)offering to engage in any activity or act in any capacity described in subsections (38)(a) through (38)(d). See Montana Code 32-9-103
- State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See Montana Code 1-1-201
(a)an entity that is an agency of the federal, state, tribal, or local government;
(b)an individual who is an employee of a federal, state, tribal, local government, or housing finance agency acting as a loan originator only pursuant to the individual’s official duties as an employee of the federal, state, tribal, local government, or housing finance agency;
(c)an entity described in 32-9-103(39)(a)(i) through (39)(a)(iii);
(d)a registered mortgage loan originator when acting for an entity described in 32-9-103(39)(a)(i) through (39)(a)(iii);
(e)an individual who performs only administrative or clerical tasks at the direction of and subject to the supervision and instruction of an individual who:
(i)is a licensed and registered mortgage loan originator pursuant to this part; or
(ii)is not required to be licensed in accordance with subsection (1)(b), (1)(d), or (1)(g);
(f)an entity that is a bona fide not-for-profit entity;
(g)an employee of a bona fide not-for-profit entity who acts as a loan originator only with respect to work duties for the bona fide not-for-profit entity and who acts as a loan originator only with respect to residential mortgage loans with terms that are favorable to the borrower, or acts as a servicer with respect to work duties for the bona fide not-for-profit entity;
(h)a person that performs only real estate brokerage activities and is licensed or registered pursuant to 37-51-301 unless the person is compensated by a mortgage broker, a mortgage lender, or a mortgage loan originator or an agent of the mortgage broker, mortgage lender, or mortgage loan originator;
(i)a person regulated by the commissioner of insurance if that person’s principal business is that of preparing abstracts or making searches of titles that are used as a basis for the issuance of any title insurance policy by a company doing business under the laws of this state relating to insurance companies;
(j)a Montana-licensed attorney performing activities that fall within the definition of a mortgage loan originator if the activities are:
(i)considered by the Montana supreme court to be part of the authorized practice of law within this state;
(ii)carried out within an attorney-client relationship; and
(iii)accomplished by the attorney in compliance with all applicable laws, rules, and standards; or
(k)an individual who is an employee of a retailer of manufactured or modular homes if the employee is performing only administrative or clerical tasks in connection with the sale or lease of a manufactured or modular home and if the individual receives no compensation or other gain from a mortgage lender or a mortgage broker for the performance of the administrative or clerical tasks.
(2)(a) To qualify for an exemption under subsection (1)(f), an entity shall certify, on a form prescribed by the department, that it is a bona fide not-for-profit entity and shall provide additional documentation as required by the department by rule. To maintain this exemption, the entity shall file the prescribed certification and accompanying documentation by December 31 of each year.
(b)In determining whether an entity is a bona fide not-for-profit entity, the department may rely on its receipt and review of:
(i)reports filed with federal, state, tribal, local government, or housing finance agencies and authorities; or
(ii)reports and attestations prescribed by the department.
(3)The burden of proving an exemption under this section is on the person claiming the exemption. (See part compiler’s comment regarding contingent suspension.)