Arizona Mortgage Loan Originator License

Arizona Mortgage Education

EasyRealEstateSchool.com offers these Arizona mortgage education courses in conjunction with MortgageEducation.com. All the mortgage education courses are NMLS-approved and will satisfy all the required education hours for your state. Should you have any questions please feel free to contact MortgageEducation.com.

Who is required to have this license? See A.R.S. Section 6-991

A natural person who for compensation or gain or in the expectation of compensation or gain does any of the following:

• Takes a residential mortgage application.
• Offers or negotiates terms of a residential mortgage loan.
• On behalf of a borrower, negotiates with a lender or note holder to obtain a temporary or permanent modification in an existing residential mortgage loan agreement.

Who does not need this license? See A.R.S. Section 6-991.01

• Registered loan originators.
• An individual who offers or negotiates terms of a residential mortgage loan secured by a dwelling that served as the individual’s residence.
• A person who is a responsible individual and who does not act as a loan originator.
• An employee of a licensed commercial mortgage banker or commercial mortgage broker.
• An employee of a person licensed pursuant to A.R.S. Tile 6, Chapter 9 if the licensee affirms in writing to the superintendent that the licensee will not originate or negotiate a mortgage loan that has a security in the form of a residential dwelling of one to four units.
• A person who, as seller of real property, receives one or more mortgages or deeds of trust as security for a purchase money obligation.
• A licensed attorney who negotiates the terms of a residential mortgage loan on behalf of a client as an ancillary matter to the attorney’s representation of the client, unless the attorney is compensated by a lender, a mortgage broker or any other loan originator or by any agent of the lender, mortgage broker or other loan originator.
• An individual who offers to negotiate terms of a residential mortgage loan with or on behalf of the individual’s immediate family member and who does not otherwise engage in the business of a loan originator.
• A manufactured home retailer and its employees if performing only clerical or support duties in connection with the sale or lease of a manufactured home and the manufactured home retailer and its employees receive no compensation or other gain from a mortgage banker or a mortgage broker for the performance of the clerical or support duties.
• An individual who is employed by a residential mortgage loan servicer if the individual is involved solely in loss mitigation efforts, unless the United States Department of Housing and Urban Development determines that the Secure and Fair enforcement for Mortgage Licensing Act of 2008 (p.l. 110-289; 122 stat. 2810; 12 United Stated code sections 5101–5116) requires the individual to be licensed as a mortgage loan originator. For the purposes of this paragraph, “loss mitigation efforts” means a residential mortgage borrower is in default or default is reasonable foreseeable and an individual works with the borrower on behalf of the residential mortgage loan servicer to modify temporarily or permanently the obligation or to otherwise mitigate loss on an existing residential mortgage loan.

Pre-requisites for license applications:

• Education
  As part of the mortgage loan originator application process, a mortgage loan originator who will originate Arizona residential mortgage loans and/or modifications must complete 20 units of Arizona pre-licensing education prior to licensure. Documentation on the course(s) taken must be sent to AzDFI and include the course and units taken. The 20 units pre-licensing course of study shall include:
  • Federal Law – 3 units
  • Ethics – 3 units
  • Non-traditional mortgage products – 2 units
  • Arizona mortgage related law (i.e. tile, appraisal, real estate, etc… as it relates to mortgage industry) – 4 units
  • Any other mortgage related courses that contribute to the maintenance and improvement of professional competence – 8 units (i.e. FHA, VA, Appraisal, etc…)

  More detailed information may be found at:
  Responsible Individual and Loan Originator Education

• Testing
  All mortgage loan originators must pass the Mortgage Loan Originator Test, which is comprised of two components: a National Component and an Arizona State Component. Mortgage loan originators must pass each Component with a score of 75% or higher. Please go to the Testing Page of the NMLS Resource Center web site for test enrollment information and the Testing Handbook.
• Surety Bond/Recovery Fund
  Every mortgage loan originator must be covered under a surety bond or recovery fund. Satisfaction of this requirement can be met by one of the following:
  (a) Mortgage loan originator to pay $100.00 into the recovery fund at time of application.
  (b) Employer may provide evidence of a surety bond that meets Arizona requirements in amount of not less than $200,000.00. This is in addition to the bond that the employer is required to have for its mortgage broker or mortgage banker license.
• Criminal History
  Applicant may not have been convicted of a felony during the seven year period immediately preceding the date of the application or any crime of breach of trust or dishonesty, fraud or money laundering at any time preceding the date of the application.
• Issuance and Location of License See A.R.S Section 6-991.04
  AzDFI will forward the mortgage loan originator’s license to the employing mortgage broker, mortgage banker or consumer lender once the following has occurred:

  1. AzDFI has determined that the applicant is qualified and paid the required fees.
  2. AzDFI has received a Sponsorship request through NMLS if the mortgage loan originator is employed by a mortgage broker or mortgage banker.
  3. AzDFI has received a written notice that the employer has hired the mortgage loan originator if the mortgage loan originator is employed by a licensed consumer lender. The notice shall contain a request for the mortgage loan originator’s license and shall be dated, signed by an officer or other person authorized by the employer, and notarized. The employing mortgage banker, mortgage broker or consumer lender shall keep and maintain the originator’s license at the principal place of business in Arizona.
  Within five business days after any licensee’s employment termination, the employing mortgage broker, mortgage banker or consumer lender shall do the following:

  1. File a Sponsorship removal through NMLS if a mortgage banker or mortgage broker.
  2. Provide a written notice of the termination of employment if a consumer lender.

  ALL LICENSING AND PROCESSING FEES COLLECTED ARE NOT REFUNDABLE.

For more information about the actual course please visit Mortgage Education Course FAQ’s.

 

Arizona State Requirments

SAFE ACT Requirements

• SAFE MLO Test – All new applicants on or after 1/1/2009 must pass the National and State Components of the SAFE MLO Test Component of the SAFE MLO Test in order to be issued a license by 7/1/2010.
• Criminal Background Check – All new applicants on or after 1/1/2009 must submit fingerprints through NMLS for a criminal background check starting 1/25/2010. All new applicants on or after 1/1/2009 must submit fingerprints through NMLS for a criminal background check in order to be issued a license by 7/1/2010.
• Credit Report – All new applicants on or after 1/1/2009 must authorize a credit report through NMLS by TBD.All licensees will be required to authorize a credit report through NMLS between October 2010 and March 1, 2011.

Arizona Mortgage Education Requirements

• SAFE Act Pre-License (required courses – State Law 4 hours, SAFE CORE 8 hours) – All new applicants on or after 1/1/2009 must complete 20 hours of NMLS approved pre-licensure education, including 4 hours of AZ specific in order to be issued a license by 7/1/2010. State approved courses will no longer be accepted after 12/31/2009.
• SAFE Act Continuing Education (required courses – State Law 1 hour, SAFE CORE 7 hours) – All licensees must complete 8 hours of NMLS approved continuing education, including 1 hour of AZ specific, in 2011 in order to renew for 2012. This course should be taken Yearly by 12/31.
• Certification (Education) – Currently licensed MLOs who have completed at least 20 hours of AZ state approved education on or before 12/31/2009 may be eligible to participate in the PE certification process and may not need to take the NMLS approved pre-licensure education. Refer to your state agency for more information.

For more information about the actual course please visit Mortgage Education Course FAQ’s.