Mortgage Broker Licensing Requirements for Arizona
Arizona is an appealing state with an active real estate market. The state’s diverse landscapes, from the Grand Canyon to the Sonoran Desert, attract a steady stream of new residents and visitors, leading to a robust real estate industry. Many real estate transactions occur as people relocate within the state or from other parts of the country. You can gain financially by becoming a part of some of these transactions as a mortgage broker. But to do so, you would have to obtain a mortgage broker license.
Read on to learn all about what a mortgage broker is and the mortgage broker licensing requirements for Arizona.
What Is a Mortgage Broker?
Most people don’t have enough funds to buy a house independently. Therefore, when someone purchases a home, they typically pay for it partially with their own money and borrow most of the funds from a bank.
A mortgage broker acts as a bridge between homebuyers and lenders, facilitating the process of securing the necessary funds to purchase a home. As banks profit from these loans, they compensate mortgage brokers with a commission for their services.
Why Do I Need a Mortgage Broker License?
According to Arizona State Law, anyone in Arizona who makes — or attempts to make — money from brokering a loan must hold a mortgage broker license. Attempting to broker loans without a valid license would be a violation of state laws. So, to take advantage of this lucrative field, you must obtain a mortgage loan originator license.
What Are the Mortgage Loan Originator Licensing Requirements for Arizona?
To obtain a mortgage loan originator license in Arizona, you will have to go through the following multi-step process:
- Apply for an account on the NMLS website.
- Take 20 hours of pre-license education, which includes federal and state laws that pertain to mortgage brokers.
- Pass an exam.
- Fill out an application, which includes the following fees:
- An application fee of $500 to the state
- A prorated license fee based on the month you submit your application:
- If you submit in January, February, or March, the fee will be $250
- If you submit in April, May, or June, the fee will be $187.50
- If you submit in July, August, or September, the fee will be $125
- If you submit in October, the fee will be $62.50
- If you submit in November or December, the fee will be $312.50
- An NMLS processing fee of $100
- An FBI criminal background check fee of $36.25
The fee goes down gradually between January and October because the state recognizes that the license will expire on December 31, so the later in the year you apply, the less use you’ll get out of it that year. The fee then increases in November and December because if you apply that late in the year, your license won’t expire until the end of the following year.
Take Advantage of This Opportunity
For mortgage companies seeking a mortgage broker license, the process can seem daunting. However, with MLG’s Arizona Responsible Individual Program, you can navigate these requirements with ease. We provide the necessary services and support to help your company earn its mortgage broker license, giving you the confidence to embark on this new venture.