The Arizona Division of Insurance and Financial Institutions is tasked with overseeing mortgage broker and banker licensing. Licensing requirements are established under Arizona State Legislature Title 6. Regulations state that both mortgage brokers and bankers must maintain an active surety bond.
This surety bond is an agreement between three parties:
- Principal: The mortgage broker or banker that needs to get the bond.
- Obligee: The entity requiring the principal to get bonded.
- Surety: The company that issues the bond.
The surety bond provides assurance that someone impacted by a broker’s or banker’s violation of established rules can be compensated. Upon receiving a claim, the surety investigates the matter and determines its validity. For valid claims, it compensates the claimant. The principal must reimburse the surety for the amount paid.
Avoiding claims against the bond is financially beneficial to Arizona mortgage brokers and bankers. This is easily accomplished by following the required regulations.
How Much Does a Mortgage Broker Bond Cost in Arizona?
The cost of an Arizona mortgage broker bond is between $100 and $1,500. The required bond amount ranges from $10,000 to $15,000. A mortgage banker bond in Arizona costs between $250 and $10,000. The required bond amount is between $25,000 and $100,000.
A mortgage banker may also be required to post a $200,000 mortgage loan originator bond to meet its originators’ financial responsibility. The cost of this bond ranges from $2,000 to $20,000. As an alternative, each loan originator will be billed $100 for each new and renewal application.
The cost of the required bond is 1% to 10% of the bond amount. This is also referred to as the bond rate or bond premium.
Arizona Mortgage Broker and Banker Bond Cost by Credit Score |
||||
Surety Bond Name |
Surety Bond Amount |
700 or Higher |
600-699 |
599 or Below |
Mortgage Broker Bond (institutional investors) |
$10,000 |
$100 - $300 |
$300 - $500 |
$500 - $1,000 |
Mortgage Broker Bond (non-institutional investors) |
$15,000 |
$150 - $450 |
$450 - $750 |
$750 - $1,500 |
Mortgage Banker Bond (institutional investors) |
$25,000 |
$250 - $750 |
$750 - $1,250 |
$1,250 - $2,500 |
Mortgage Banker Bond (non-institutional investors) |
$100,000 |
$1,000 - $3,000 |
$3,000 - $5,000 |
$5,000 - $10,000 |
Mortgage Loan Officer Bond |
$200,000 |
$2,000 - $6,000 |
$6,000 - $10,000 |
$10,000- $20,000 |
Our customers frequently ask about the factors that determine how much a bond costs. Consideration is given to the applicant’s credit scores, bond history, industry experience and finances.
How to Get a Mortgage Broker Bond in Arizona
1. Apply For Your Bond
The process for obtaining an Arizona mortgage broker bond or mortgage banker bond has three easy steps. First, choose from two convenient application methods.
- Apply for a bond online – Our online bond application is available 24/7 for your convenience. Typically, it only takes a few minutes for our valued customers to complete the application.
- Call us at (888)-592-6631 – Our bond specialists are happy to take your application over the phone and answer any questions you have.
When applying, you will need:
- Bond name (Arizona Department of Insurance and Financial Institutions Surety Bond Form or Loan Originator Surety Bond)
- Bond amount ($10,000 to $200,000)
- Email and contact information
2. Get a Quote
Our customers enjoy receiving an instant bond quote from us after applying. Once you receive the quote in your inbox, please review it carefully and let us know if you spot errors. We are happy to review the quote with you, if requested.
3. Purchase Your Bond
You can conveniently pay your invoice and sign the documents online. After doing so, you will receive the original bond via email.
Arizona Mortgage Broker and Banker Bond Requirements
When applying for a Arizona mortgage broker license or a mortgage banker license, an electronic surety bond must be submitted through the NMLS. The requirements for a mortgage broker license and a mortgage banker license are enforced by the Arizona Department of Insurance and Financial Institutions.
You must submit the appropriate bond form, the Arizona Department of Insurance and Financial Institutions Surety Bond for mortgage brokers and bankers and the Arizona Loan Originator Surety Bond for loan originators. The bond remains in force until canceled by the surety company.
If you have any questions regarding the definition and role of mortgage brokers and bankers in Arizona, the required bond amount, etc., please contact us.
When a new customer contacted us recently to purchase a mortgage broker bond, she had a few questions about how a bond works. Our bond experts took time answering her questions in detail. She appreciated our thoroughness as well as our support taking her application over the bond.
How to Get Your Mortgage Broker or Banker License in Arizona
The licensing process for Arizona mortgage brokers and bankers is completed through the Nationwide Mortgage License System. When applying for a license, the following items are required:
- Application
- Surety bond
- Registered agent
- Financial statements – business and personal
- Credit report
- Application fee
- FBI criminal background check
- Business plan
- Contact employees
- Responsible or qualifying individual
- Verification of experience
- Documentation of citizenship or alien status
- Business plan
- Management chart
- Organizational chart
- Formation documents
Sources
Nationwide Mortgage Licensing System. (n.d.). Checklist compiler. https://mortgage.nationwidelicensingsystem.org/slr/SitePages/Checklist-Compiler.aspx
Arizona Department of Insurance and Financial Institutions. (n.d.). Financial institutions. https://difi.az.gov/industry/financial-institutions
Arizona Department of Insurance and Financial Institutions. (n.d.). AP-LC-AP-AMC bond. https://difi.az.gov/sites/default/files/AP-LC-AP-AMC-Bond.pdf
Arizona Department of Financial Institutions. (n.d.). Arizona mortgage loan originator surety bond form.
https://dfi.az.gov/sites/default/files/AZMLOSuretyBond.pdf
Arizona State Legislature. (n.d.). Title 6: Banks and financial institutions. Arizona State Legislature. https://www.azleg.gov/arsDetail/?title=6
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