| Arizona Mortgage Licensing is one of the most corrupt | | | | review some of your files on subject properties in |
| type of mortgage licensing schemes in the United | | | | Arizona just to cover them in case you are audited, |
| States. They require a Responsible Individual that must | | | | however, the limited number of responsible individuals in |
| be a resident of Arizona to act as your responsible | | | | the state makes it very costly to hire someone |
| individual. Since there are not many people that have | | | | because they can charge a lot for their services |
| this type of license, it usually costs about $1,000 to | | | | Licensing Application |
| $1,500 per month to hire someone to be your | | | | The license application is fairly extensive and requires |
| Responsible Individual. If you have the money to spend, | | | | personal and company financials. There are numerous |
| this is a great state to originate in. | | | | pages of information on the owners, officers, and |
| Certificate of Authority | | | | directors of the company that must be completed. |
| You are required to register your corporation as a | | | | Here is a basic overview of the requirements for each |
| foreign corporation with the state. This is very tedious | | | | type of mortgage license in Arizona: |
| because you actually have to file with two different | | | | Mortgage Banker Licensing |
| agencies. Any trade names also need to be filed with | | | | Mortgage Banker License |
| the Secretary of State. | | | | Physical Office Required: Yes |
| Surety Bond | | | | In-State Officer/ Key Person: Yes |
| Both the Broker and Banker licenses require that you | | | | Minimum Net Worth: $100,000 to $250,000 |
| obtain a surety bond. The surety bond is needed to | | | | Surety Bond: $25,000 to $100,000 |
| protect consumers and third parties from the | | | | State Initial Fee: $879 |
| mortgage companies non-payment. The surety bond is | | | | Loan Officer License: No |
| not an insurance policy so it is required to be paid back | | | | Branch License: Yes |
| if used. | | | | Mortgage Broker Licensing |
| Brick'n'Mortar (Physical Office in the State) | | | | Mortgage Broker License |
| Arizona does require that you have a physical office in | | | | Physical Office Required: Yes |
| the state in order to obtain a mortgage license, | | | | In-State Officer/ Key Person: Yes |
| however, the responsible individual usually has a | | | | Minimum Net Worth: $ None |
| physical location in Arizona that may be used as your | | | | Surety Bond: $10,000 to $15,000 |
| physical location. This location may be the physical | | | | State Initial Fee: $879 |
| location for an unlimited number of companies. | | | | Loan Officer License: No |
| Responsible Individual | | | | Branch License: Yes |
| The responsible individual as mentioned above is the | | | | Regulated by: |
| biggest scam. I don't fault the responsible individuals for | | | | Department of Financial Institutions |
| this, but the state. The responsible individual will usually | | | | 2910 N. |