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License Requirements

  1. Be a resident of Arizona before obtaining your license.
  2. Have at least three of the last five years of lending experience or its equivalent.
  3. Complete 24 hours Pre-licensing Education.
  4. Pass a school examination.
  5. Pass a state examination.
  6. Have your place of business in the State of Arizona.
  7. Identify a responsible individual.
  8. Obtain a bond.
  9. Provide information from the Secretary of State’s office.
  10. Provide a Certificate of Good Standing from the Arizona Corporation Commission.
  11. Provide a biographical statement and consent form.
  12. Provide a Corporate Financial Statement.
  13. Provide Statement of Citizenship/Alien Status (sole proprietors).
  14. Provide a copy of the Lease Agreement for leased premises.
  15. Provide two fingerprint cards for each control person, and separate fingerprint processing fees.
  16. Make required disclosures.
  17. Sign an affidavit (officer on file).
  18. Apply through Arizona Department of Financial Institutions (AzDFI), which utilizes the Nationwide Mortgage Licensing System (NMLS).
  19. Pay an AzDFI application fee plus the NMLS processing fee (total of $900).
  20. Mail hard copies of required documents to AzDFI.

Steps to Obtain a License

1. Be a resident of Arizona before obtaining your license
  • You may take the school exam and state exam without being a resident.
2. Have at least three of the last five years of lending experience or its equivalent.
  • You will need at least some experience in the lending field.
  • Acceptable experience is outlined in A.A.C R20-4-906, and substitute experience is addressed in the same regulation.
  • A copy has been provided at the end of this summary, for your reference.
3. Complete 24 hours of approved schooling and pass a school examination.
  • You will need a financial calculator for the school exam.
  • Your calculator may not store any alpha characters.
  • You must obtain your mortgage broker’s license within three years of completing the course of study.
 4. Register for, take and pass the State Exam.
  • To register you will need a copy of the school “Certificate of Completion”
  • A letter of intent for bond from a surety company or a copy of the actual bond. (Refer to the text of A.R.S. 6-903 (H) and (I) at the end of this section for more information.)
  • The exam fee is $50, payable only by check.
  • Your calculator may not store any alpha characters.
  • Bring at least two to three #2 sharpened pencils with erasers to the state testing center.
  • A filled out test registration form.
  • The exam consists of 125 questions.
  • Must score a 70% or higher.
  • A Pass/Fail statement will be mailed within thirty days (Please do not contact AZDFI for test results during this thirty-day period. Licensing personnel will not give test results over the phone.)
  • Test results are good for one year.
  • Go to AZDFI to fill out an exam registration form.

Time and Location of State Exam

  • Tests are held at 100 N 15th Avenue, Suite 261, Phoenix, AZ 85007.
  • The training room opens at 8:00 a.m..
  • Should the number of test takers require AZDFI to provide an afternoon test, then the training room will open at 1:00 p.m. for the afternoon test.
  • Unless notified differently at the time you register, you will be expected to arrive in time for the morning test.
  • No one will be admitted to the test site after 8:15 a.m. & 1:15 p.m. respectively.

Day of Test

  • Candidates must bring two forms of identification (one must be a picture ID) and your receipt showing you paid your test registration.
  • Receipt showing payment of exam fee.
  • If you mailed your registration in by the deadline your receipt will be at the instructors’ desk where you will be required to sign in before taking the test.

 

5. Have your place of business in the State of Arizona.
6. Identify a responsible individual.
7. Obtain a bond.
  • The amount of the bond will either need to be $10,000 or $15,000, depending on the type of investor the lender works with.
  • Refer to the text of A.R.S. 6-903 (H) and (I) at the end of this section for more information.
8. Provide information from the Secretary of State’s office.
  • Such as a trade name certificate, Corporate Charter or Articles of Incorporation (if a corporation), Articles of Organization and Operating Agreement (if a limited liability company) or Partnership Agreement (if a partnership).
9. Provide a Certificate of Good Standing from the Arizona Corporation Commission.
  • Additional requirements apply if the business was formed outside of Arizona.
10. Provide a biographical statement and consent form.
11. Provide a Corporate Financial Statement.
12. Provide Statement of Citizenship/Alien Status (sole proprietors).
13. Provide a copy of the Lease Agreement for leased premises.
14. Provide two fingerprint cards for each control person, and separate fingerprint processing fees.
15. Make required disclosures.
16. Sign an affidavit (officer on file).
17. Apply through Arizona Department of Financial Institutions (AzDFI), which utilizes the Nationwide Mortgage Licensing System (NMLS).
  • Mortgage broker applicants can link to the NMLS site through the Arizona Department of Financial Institutions site at www.azdfi.gov.
18. Pay an AzDFI application fee plus the NMLS processing fee (total of $900).
19. Mail hard copies of required documents to AzDFI.
  • They must be received within 5 business days of the electronic submission of your application.

R4-4-906. Equivalent and related experience

An applicant may satisfy the 3 years’ experience requirement by the types of lending-related experience listed in this subsection. The department counts each month in the following types of work experience towards the 3 years required for a mortgage broker license, or as a responsible individual. The department counts a fractional month of experience, at least 15 days long, as a full month:

  1. Mortgage broker with Arizona license, or responsible individual or branch manager for a licensee
  2. Mortgage banker with Arizona license, or responsible individual or branch manager for a licensee
  3. Loan officer, with responsibility primarily for loans secured by lien interests on real property
  4. Lender’s branch manager, with responsibility primarily for loans secured by lien interests on real property
  5. Mortgage broker with license from another state, or responsible individual for a mortgage broker licensed in another state
  6. Mortgage banker with license from another state, or responsible individual for a mortgage broker licensed in another state
  7. Attorney certified by any state as a real estate specialist

An applicant with insufficient actual experience of the types listed in subsection (A) may satisfy the remainder of the 3 years’ experience requirement by the types of related experience listed in this subsection. The department counts each month in the following types of work experience according to the ratio listed below, of actual experience to equivalent experience, credited towards qualifying for a license, either or as a responsible individual. The department counts a fractional month of experience, at least 15 days long, as a full month. An applicant receives credit in only 1 area listed and for not more than 3 years’ actual experience. The remaining years of experience required to qualify for a license shall be obtained from types of work experiences listed in subsection (A).

  1. Attorney without state bar certified real estate specialty 3:2
  2. Paralegal with experience in real estate matters 3:2
  3. Loan underwriter 3:2
  4. Mortgage broker or mortgage banker from another state without license 3:2
  5. Real estate broker with an Arizona license or license from a state with substantially equivalent licensing requirements 3:2
  6. Escrow officer 3:2
  7. Trust officer, with a title company 3:2
  8. Executive, supervisor, or policy maker involved in administering or operating a mortgage-related business 3:1.5
  9. Title officer, with a title company 3:1.5
  10. Real estate broker, not qualified under subsection (B)(5) 3:1.5
  11. Loan processor, with responsibility primarily for loans secured by lien interests on real property 3:1.5
  12. Lender’s branch manager, with responsibility primarily for loans not secured by lien interests on real property 3:1.5
  13. Real property salesperson, with an Arizona license or a license from a state with substantially equivalent licensing requirements 3:1
  14. Loan officer, with responsibility primarily for loans not secured by lien interests on real estate 3:1

A.R.S. 6-903

The bond required by this section shall be ten thousand dollars for licensees whose investors are limited solely to institutional investors, and fifteen thousand dollars for licensees whose investors include any non-institutional investors.

For the purposes of subsection H of this section:

  1. “Institutional investor” means a state or national bank, a state or federal savings and loan association, a state or federal savings bank, a state or federal credit union, a federal government agency or instrumentality, a quasi-federal government agency, a financial enterprise, a licensed real estate broker or salesman, a profit sharing or pension trust, or an Insurance company.
  2. “Investor” means any person who directly or indirectly provides to a mortgage broker funds that are, or are intended to be, used in the making of a loan, and any person who purchases a loan, or any interest therein, from a mortgage broker or in a transaction that has been directly or indirectly arranged or negotiated by a mortgage broker.

You may download the test registration form and check for test dates at: http://www.azdfi.gov/Licensing/schoolsandtest.html

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