32-9-103. Definitions. As used in this part, the following definitions apply:
     (1) "Bona fide third party" means a person or entity that provides services relative to residential mortgage loan transactions. The term includes but is not limited to real estate appraisers and credit reporting agencies.
     (2) "Borrower" means an individual who is solicited to purchase or who purchases the services of a mortgage broker for other than commercial mortgage lending.
     (3) "Department" means the department of administration provided for in 2-15-1001, acting through its division of banking and financial institutions.
     (4) "Designated manager" means a person employed by a mortgage broker entity, other than a sole proprietorship, as the person responsible for operating the business at the location where the person is employed. A designated manager must be licensed as a mortgage broker.
     (5) "Entity" means a business organization, other than a sole proprietorship or an individual person, that provides mortgage broker services.
     (6) "Lender" means an entity that funds or services a residential mortgage loan.
     (7) "Loan originator" means a licensed individual employed by a mortgage broker to assist borrowers by originating a residential loan.
     (8) "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.
     (9) "Mortgage banker" means a person or entity that makes, services, or buys and sells mortgage loans and that may be required to submit audited financial statements to the United States department of housing and urban development, the United States department of veterans affairs, the federal national mortgage association, the federal home loan mortgage corporation, or the government national mortgage association.
     (10) "Mortgage broker" means a person or entity that provides services for a fee as an intermediary between a borrower and a lender in obtaining financing for the borrower that is to be secured by a residential dwelling for between one and four families.
     (11) "Originate" means:
     (a) to negotiate or arrange or to offer to negotiate or arrange a mortgage loan between a borrower and a person or entity that makes or funds mortgage loans;
     (b) to issue a commitment for a mortgage loan to a borrower; or
     (c) to place, assist in placing, or find a mortgage loan for a borrower.
     (12) "Trust account" means a depository account with a financial institution that provides deposit insurance that is separate and distinct from any personal, business, or other account of the mortgage broker and that is maintained solely for the holding and payment of bona fide third-party fees.

     History: En. Sec. 3, Ch. 516, L. 2003; amd. Sec. 1, Ch. 136, L. 2005.