4 Hour AZ SAFE: Arizona Mortgage Lending Laws

This course is designed to prepare candidates to take the exam to become a state-licensed mortgage loan originator in Arizona under the Arizona Department of Financial Institutions (DFI). This 4-hour course covers Arizona specific rules and regulations, and is required as part of the 20 hours of prelicensure education needed to become an Arizona mortgage loan originator.

Topics and Learning Objectives

This course consists of five modules and a final exam:

1. Mortgage Broker Licensing and Regulations (40 minutes)
2. Mortgage Banker Licensing and Regulations (50 minutes)
3. Mortgage Loan Originator Licensing and Regulations (40 minutes)
4. The AZDFI Mortgage Recovery Fund (30 minutes)
5. AZDFI Disciplinary Actions (20 minutes)
6. Final Exam (20 minutes)

Total study time: 4 credit hours (200 minutes)

Module 1: Mortgage Broker Licensing and Regulations

In this module we will cover the licensing of mortgage broker. A mortgage broker is a person who, with the expectation of being paid for their services, directly or indirectly can make a mortgage loan or can negotiate a mortgage loan. A mortgage loan is a financial arrangement secured by an interest in real property located in Arizona that is created with the consent of the real property's owner. A mortgage broker can make a mortgage loan on both residential real property and commercial real property, depending on the license status.

Module 2: Mortgage Banker Licensing and Regulations

This module will cover the licensing of Arizona mortgage bankers. A mortgage banker is a person who, with the expectation of being paid for their services, directly or indirectly can make a mortgage banking loan or can negotiate a mortgage banking loan. A mortgage banking loan is a loan funded exclusively from the mortgage banker's own resources that is directly or indirectly secured by an interest on real estate located in the State of Arizona and is created with the consent of the real property owner. Mortgage bankers can issue mortgage loans on both residential and commercial real property. A mortgage banker license also allows for the servicing (i.e., collecting payments) of mortgage loans.

Module 3: Mortgage Loan Originator Licensing and Regulations

In this chapter we'll describe the licensing of mortgage loan originators. A mortgage loan originator is a natural person (i.e., an individual) who, for the expectation of compensation, takes a mortgage loan application for a borrower, offers or negotiates the terms of a residential mortgage loan, or negotiates with a borrower's lender for a temporary or permanent loan modification. Note that mortgage loan originators do not make mortgage loans, whether residential or commercial, like mortgage brokers or mortgage bankers. MLOs act as the intermediary between a loan applicant and a mortgage lender, mortgage broker, or mortgage banker.

Module 4: The AZDFI Mortgage Recovery Fund

The Department of Financial Institutions' mortgage recovery fund can be used by the Superintendent to pay for damages caused by a malicious licensee when the licensee's surety bond cannot cover the judgment issued against the licensee. This module will explain the use of the fund by the Superintendent, how claims are filed against the fund, and how payments are issued from the fund.

Module 5: AZDFI Disciplinary Actions

As the regulatory agency assigned to oversee Arizona mortgage lending activities, the Department of Financial Institutions and its principal Superintendent have the authority to discipline licensees under its jurisdiction. The module will explain the authority granted to the AZDFI to protect financial lending consumers.

NMLS ID Required

You must have an NMLS ID to receive credit for this course. You will need this number before you begin the course.

If you already have an NMLS ID, but don't remember what it is:

• Login into NMLS,
• Click on the Composite View tab, then
• Click View Individual on the sub-header row.
• The number that appears in parentheses after your name is your NMLS ID number.

If you do not have an NMLS ID and need to obtain one, use the instructions available in the NMLS Resource Center