Nov
25
Arizona Mortgage Licensing
Filed Under General
Arizona Mortgage Licensing is one of the most corrupt type of mortgage licensing schemes in the United States. They require a Responsible Individual that must be a resident of Arizona to act as your responsible individual. Since there are not many people that have this type of license, it usually costs about $1,000 to $1,500 per month to hire someone to be your Responsible Individual. If you have the money to spend, this is a great state to originate in.
Certificate of Authority
You are required to register your corporation as a foreign corporation with the state. This is very tedious because you actually have to file with two different agencies. Any trade names also need to be filed with the Secretary of State.
Surety Bond
Both the Broker and Banker licenses require that you obtain a surety bond. The surety bond is needed to protect consumers and third parties from the mortgage companies non-payment. The surety bond is not an insurance policy so it is required to be paid back if used.
Brick’n'Mortar (Physical Office in the State)
Arizona does require that you have a physical office in the state in order to obtain a mortgage license, however, the responsible individual usually has a physical location in Arizona that may be used as your physical location. This location may be the physical location for an unlimited number of companies.
Responsible Individual
The responsible individual as mentioned above is the biggest scam. I don’t fault the responsible individuals for this, but the state. The responsible individual will usually review some of your files on subject properties in Arizona just to cover them in case you are audited, however, the limited number of responsible individuals in the state makes it very costly to hire someone because they can charge a lot for their services
Licensing Application
The license application is fairly extensive and requires personal and company financials. There are numerous pages of information on the owners, officers, and directors of the company that must be completed. Here is a basic overview of the requirements for each type of mortgage license in Arizona:
Mortgage Banker Licensing
Mortgage Banker License
Physical Office Required: Yes
In-State Officer/ Key Person: Yes
Minimum Net Worth: $100,000 to $250,000
Surety Bond: $25,000 to $100,000
State Initial Fee: $879
Loan Officer License: No
Branch License: Yes
Mortgage Broker Licensing
Mortgage Broker License
Physical Office Required: Yes
In-State Officer/ Key Person: Yes
Minimum Net Worth: $ None
Surety Bond: $10,000 to $15,000
State Initial Fee: $879
Loan Officer License: No
Branch License: Yes
Regulated by:
Department of Financial Institutions
2910 N. 44th Street, Suite 310
Phoenix, AZ 85018
Telephone: (602) 255-4421
Fax: (602) 381-1225
Steven Sheasby, founder of Integrity Mortgage Licensing, has worked with numerous mortgage companies with licensing across the country. He has managed multiple compliance departments for nationwide lenders and brokers. His experience in mortgage licensing and other mortgage regulatory compliance issues has given him the inside track for dealing with the states without the expensive cost of an attorney. Contact Integrity Mortgage Licensing at 714-721-3963 or ssheasby@integritymortgagelicensing.com
Or Visit their website at http://www.integritymortgagelicensing.com
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