Arizona Licensing Information

Arizona State Corporation Commission

The Corporations Division of the Arizona Corporation Commission is the agency charged with approving and maintaining records for all corporations and limited liability companies.


Arizona Secretary of State

The Office of the Secretary of State is the agency charged with approving and maintaining records for all partnerships and trade names.


Arizona Department of Financial Institutions

The Arizona Department of Financial Institutions is the agency charged with licensing and supervising Mortgage Brokers, Mortgage Bankers, and Commercial Mortgage Bankers (as well as other regulated entities).


Arizona Revised Statutes (Title 6)
Mortgage Brokers are regulated by A.R.S. 6-901 through 6-910

Mortgage Bankers are regulated by A.R.S. 6-941 through 6-948

Commercial Mortgage Bankers are regulated by A.R.S. 6-971 through 6-985

 

Arizona requires an in-state office (per the following statutes)


Mortgage Brokers – A.R.S. 6-904(H): “Every licensed mortgage broker shall designate and maintain a principal place of business in this state for the transaction of business…”


Mortgage Bankers – A.R.S. 6-944(E): “Every licensed mortgage banker shall designate and maintain a principal place of business in this state for the transaction of business…”


Commercial Mortgage Bankers – A.R.S. 6-979(A): “Each licensed commercial mortgage banker shall designate and maintain a principal place of business in this state to transact business…”


Arizona requires a “Responsible Individual” (per the following statutes)


Mortgage Brokers – A.R.S. 6-903(H): “If a licensee is a person other than a natural person…if the natural person is not a resident of this state, an employee of the licensee shall be designated in the license as the individual responsible for the licensee under the provisions of this article… a responsible individual shall be a resident of this state, shall be in active management of the activities of the licensee governed by this article and shall meet the qualifications set forth in subsection B of this section for a licensee.”


Mortgage Bankers – A.R.S. 6-943(F): “If a licensee is a person other than a natural person… if the natural person is not a resident of this state, an employee of the licensee shall be designated in the license as the individual responsible for the licensee under the provisions of this article… a responsible individual shall be a resident of this state, shall be in active management of the activities of the licensee governed by this article and shall have not less than three years' experience in the business of making mortgage banking loans or equivalent experience in a related business.”


Commercial Mortgage Bankers – A.R.S. 6-976(A&B): “A license entitles the licensee… to engage in commercial mortgage banking if one officer, director, member, partner, employee or trustee of the person is designated in the license as the individual responsible for the licensee under this article…if the natural person is not a resident of this state, an employee of the licensee shall be designated in the license as the individual responsible for the licensee under this article… a responsible individual shall be a resident of this state, shall be active in managing the activities of the licensee governed by this article and shall meet the qualifications  prescribed by section 6-973, subsection D, paragraph 1 for a licensee.”


  

The definition of a “Responsible Individual” can be found in the Arizona Administrative Rules (Title 20, Chapter 4)


R-20-4-102 (12) - "Responsible individual" or "responsible person" as those terms are used in A.R.S. §§ 6-903, 6-943, 6-973, and 6-976, means a resident of this state who:

  1. Lives in Arizona during the entire period of designation as the responsible      individual on a license;
  2. Is in active management of a licensee's affairs;
  3. Meets the qualifications listed in A.R.S. §§ 6-903, 6-943, or 6-973; and
  4. Is  an officer, director, member, partner, employee, or trustee of a licensed entity

  

Qualifications for being a “Responsible Individual” can also be found in the Arizona Administrative Rules


A. An applicant may satisfy the three years' experience requirement of A.R.S. § 6-903 by the types of lending-related experience listed in this subsection. The Department counts each month in the following types of work experience toward the three years required for a mortgage broker license, under A.R.S. § 6-903(B), or as a responsible individual, under A.R.S. § 6-903(E). The Department counts a fractional month of experience, at least 15 days long, as a full month.


  1. Mortgage broker with an Arizona license, responsible individual, or branch manager for a licensee;
  2. Mortgage banker with an Arizona license, 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 banker licensed in another state;
  7. Attorney certified by any state as a real estate specialist.

B. An applicant with insufficient actual experience of the types listed in subsection (A) may satisfy the remainder of the three years' experience requirement of A.R.S. § 6-903 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, under A.R.S. § 6-903(B), or as a responsible individual, under A.R.S. § 6-903(E). The Department counts a fractional month of experience, at least 15 days long, as a full month. An applicant receives credit in only one area listed and for not more than three 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 a 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 operating a      mortgage-related business...3:1.5
  9. Title officer with a title company...3:1.
  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 property… 3:1

  

NOTE: This information is provided as a quick reference and should not be relied upon as being the most current law or regulation published, should not be relied upon as the sole source of information, nor is it meant to represent legal advice.  Legal questions, interpretations and analysis should be directed to qualified legal counsel.