BEFORE THE DEPARTMENT OF COMMERCE

OF THE STATE OF MONTANA

 

In the matter of the amendment of ARM 8.111.409 pertaining to cash advances

) )

NOTICE OF PUBLIC HEARING ON PROPOSED AMENDMENT

 

TO: All Concerned Persons

 

            1. On July 29, 2021, at 10:00 a.m., the Department of Commerce will hold a public hearing via zoom to consider the proposed amendment of the above-stated rule. Interested parties may access the remote conferencing platform in the following ways:

 

            a. Video:

 

https://mt-gov.zoom.us/j/97338298425?pwd=akEvZ1BQa1JWbWxRdFF0NW9icEVFdz09

 

Meeting ID: 829 5250 2508                        Password: 151557

 

            b. Phone:  Dial in by Telephone: 406-444-9999

 

Meeting ID: 829 5250 2508                        Password: 151557

 

2. The Department of Commerce will make reasonable accommodations for persons with disabilities who wish to participate in this rulemaking process or need an alternative accessible format of this notice. If you require an accommodation, contact the Department of Commerce no later than 5:00 p.m., July 27, 2021, to advise us of the nature of the accommodation that you need. Please contact Bonnie Martello, Department of Commerce, 301 South Park Avenue, P.O. Box 200501, Helena, Montana 59620-0523; telephone (406) 841-2596; TDD 841-2702; fax (406) 841-2771; or e-mail [email protected].

 

3.  The rule as proposed to be amended provides as follows, new matter underlined, deleted matter interlined:

 

8.111.409  CASH ADVANCES  (1)  As part of the loan amount, the board may advance at closing either to the borrower or to third parties as directed by the borrower, an amount not to exceed $30,000 to allow the borrower to satisfy any liens on the property or make repairs to the property, and in addition, a maximum amount not to exceed the actual closing costs for items such as, but not limited to, appraisals, title policies, recording of documents, and other closing costs. The board may also advance at closing either to the borrower or to third parties as directed by the borrower, an amount in excess of the above advance of $30,000 as approved by the board on a case-by-case basis. Such amounts so advanced shall be added to the initial loan balance. To receive a cash advance, the borrower must submit a request in writing on forms supplied by the board.

 (1) The board may disburse a portion of the loan amount as a cash advance at closing for any one or more of the following purposes:

      (a)  satisfaction of any liens on the property;

      (b)  necessary repairs to the property;

      (c)  actual loan closing costs, including but not limited to appraisals, title policies, recording of documents, and other closing costs; and

      (d)  other items to assist the borrower to continue residing in the property, including but not limited to, medical expenses, transportation expenses (including automobile purchase and loan payoff), payoff of credit card debt, and supportive and specialized care services.

      (2)  To receive a cash advance at closing, the borrower must submit a request in writing on forms supplied by the board.

      (3)  A cash advance for any of the purposes specified in (1) may be approved:

      (a)  in an amount not to exceed $30,000 by board staff along with other loan approvals; and

      (b)  in an amount exceeding $30,000 by the board in a duly noticed meeting on a case-by-case basis.

            (4)  A cash advance may be disbursed either to the borrower or to third parties as directed by the borrower and approved by the board.  All cash advances disbursed at closing shall be added to the initial loan balance.

 

AUTH:  90-6-104, 90-6-106, 90-6-507, MCA

IMP:  90-6-104, 90-6-106, 90-6-502, 90-6-505, MCA

 

REASON: It is reasonably necessary to amend this rule to improve the process, while tightening up the language to decrease liability on cash advances.  

 

            4. Concerned persons may present their data, views, or arguments either orally or in writing at the hearing. Written data, views, or arguments may also be submitted to: Bonnie Martello, Department of Commerce, Legal Department, 301 South Park Avenue, P.O. Box 200501, Helena, Montana 59620-0533; telephone (406) 841-2596; fax (406) 841-2871; TDD (406) 841-2702; or e-mail [email protected], and must be received no later than 5:00 p.m., August 6, 2021.

 

5.  The Office of Legal Affairs, Department of Commerce, has been designated to preside over and conduct this hearing.

 

6. The department maintains a list of interested persons who wish to receive notices of rulemaking actions proposed by this agency. Persons who wish to have their name added to the list shall make a written request that includes the name, e-mail, and mailing address of the person to receive notices and specifies for which program the person wishes to receive notices. Notices will be sent by e-mail unless a mailing preference is noted in the request. Such written request may be mailed or delivered to the contact person listed in 4 above or may be made by completing a request form at any rules hearing held by the department.

 

7. The bill sponsor contact requirements of 2-4-302, MCA, do not apply.

 

8. With regard to the requirements of 2-4-111, MCA, the department has determined that the amendment of the above-referenced rule will not significantly and directly impact small businesses.

 

                                                                        MONTANA BOARD OF HOUSING

                                                                        Patrick E. Melby, Chairman

 

 

/s/ Jessica Blumberg                                               /s/ Adam Schafer                            

Jessica Blumberg                                                    Adam Schafer

Rule Reviewer                                                         Deputy Director

                                                                                 Department of Commerce

           

 

Certified to the Secretary of State on June 29, 2021.