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Arizona Mortgage Licensing

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. 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. 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.

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. 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 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.

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