Servicing Innovation: New law allows Montana board to service more home loans

Imagine being a first-time home buyer and your home gets damaged when a city water line bursts. Soon, you’re in court fighting to fix your home as you watch the heat bill rise because the damage means cold air now seeps into the house every day.


Even before the accident, it was a stretch to make ends meet on a nurse’s pay check, especially for a single parent who is also paying for child care. Luckily, the homeowner could reach out to the Montana Board of Housing for support, but it illustrates the challenges Montanans face every day as they struggle to keep their homes in the effort to improve their lives. It’s these stories that make my job at the Board of Housing so critical for the success of our communities.


For 42 years, we’ve provided affordable housing options for families who are not served by the market’s rates. The board provides a variety of mortgage and down-payment assistance products, originated by local banks across the state, and has been servicing loans for years.

The bipartisan passage of House Bill 26 means more Montanans will have access to working with a local loan servicer who is focused on ensuring families can stay in their homes.


Our staff are uniquely positioned to support homeowners, often the first generation in their family, and guide them through the challenges of owning a house. Our staff have helped families struggling with home mortgage delinquencies by temporarily reducing their property taxes; accessing senior supportive services, job training to improve income, the local food pantry and energy assistance, and emergency funding.

Because of the work we do, the foreclosure rate for Montana Board of Housing serviced loans is less than 1 percent – about half of the national rate.


I applaud the Legislature for its overwhelming support. Lawmakers realized that HB26, sponsored by Rep. Tom Welch, R-Dillon, allows the Board of Housing to service loans made by private lenders.


Montana’s lending institutions can trust the Board of Housing to provide top-notch servicing of their loans. Banks can focus on the next important need of their communities. Communities are stronger with more financially-stable homeowners. Families are stronger with stable housing. Children thrive in stable homes. Local economies thrive and can grow with a community of stable families and workers.


The nurse who had experienced her worst nightmare of having her home damaged, through no fault of her own, and who had worked so hard to keep her head above water was lucky enough to have her loan transferred to the Montana Board of Housing for servicing. This homeowner came back from the brink of foreclosure and is now able to work regular hours and spend more time with her son. She has been current on her loan ever since, and is grateful for the coaching and advice she received from the Montana Board of Housing.


4 Responses

  1. Incognito123, it’s called deception. They will continue as long as we let them. If we get busy letting the elected officials know we know then they need to act and end the deception . So they are playing a adult game of hot potato. Taking their money hiding in off shore banks and then someday it will collapse around them but they feel they are safe having their money somewhere else. So they will deceive us as long as they can

  2. I am all for the creation of a true non-profit servicer , probably a gov’t run institution, to take the incentives away from creating a default…and giving them the mandate to follow all laws and maintain true records of the creditors…

  3. Since so many of the issues and fraud seem to originate with the servicers, it is a positive to have an independent group doing the servicing….would be good to know if ppl are being treated more fairly than by big servicers like Wells.

  4. How can a “loan” that is not really a loan, be serviced since it never really existed?

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