Arizona requires a mortgage broker license for a person who brokers residential mortgage loans; a person who brokers only commercial mortgage loans may hold either a mortgage broker or a commercial mortgage broker license. This guide explains who needs the license, the qualifications for an original application, the Responsible Individual role, how the application works, how long review can take and what renewal requires.
This guide covers the core requirements supported by the available evidence. It is not a complete checklist.
Who needs an Arizona mortgage broker license?
Arizona law defines a mortgage broker as a person who is not exempt under the cited exemption provision and who, for compensation or the expectation of compensation, directly or indirectly makes, negotiates or offers to make or negotiate a mortgage loan.
A person may not act as a mortgage broker without a license under Article 1 of Title 6, Chapter 9.
Entity and applicant requirements
The deputy director may not grant a mortgage broker license to an applicant that is not a natural person unless the applicant is registered to do business in Arizona on the date the license is granted.
An applicant for an original mortgage broker license must have at least three years of experience as a mortgage broker or loan originator, or equivalent lending experience in a related business, during the five years immediately before applying. The applicant must also have completed a course of study approved by the deputy director during the three years immediately before applying, and have passed a mortgage broker's test under A.R.S. § 6-908.
When the examination and course requirements are waived
The deputy director waives the examination and course-of-study requirements for a person who, within the six months immediately before submitting the application, has been a licensee or a responsible person under Title 6, Chapter 9 of the Arizona Revised Statutes.
Responsible Individual requirements for entities
When the licensee is an entity, it must designate one officer, director, member, partner, employee or trustee, or an employee of an affiliated entity or parent company, as the responsible individual.
The Responsible Individual must be an Arizona resident unless exempted under the cited provision, must be in active management, and must meet the applicable qualifications in A.R.S. § 6-903(C) or (D). For this requirement, an independent contractor does not qualify as an employee.
AZRI provides Arizona Responsible Individual services and licensing support for mortgage companies. See AZRI's services to discuss the Responsible Individual role for your company.
How to apply
Applications are made in writing on the forms and in the manner the deputy director prescribes, with the information the deputy director requires; the deputy director may also ask for more information about the experience, background and competency of the applicant and any designated Responsible Individual.
Application review timing
The deputy director must grant or deny a mortgage broker license within 120 days after receiving the completed application and fees. An applicant who is denied may not reapply until one year after the date of the previous application.
Renewal education
Before submitting a renewal application, a natural-person applicant, or the designated Responsible Individual of an entity applicant, must complete 12 continuing education units from a provider approved by the deputy director.
Practical next steps
Decide whether your company's planned work fits the definition of mortgage broker, and whether it involves residential loans or only commercial loans.
If you are applying as a company, check that it is registered to do business in Arizona.
Choose your Responsible Individual early, and review the residency, active-management and qualification points above with them.
Gather the experience, course and test records for the qualifications above, or the recent licensing history that the waiver depends on.
Prepare the application materials the Department asks for, including background information about the applicant and the Responsible Individual.
After filing, keep track of when the Department received your completed application and fees.
Put continuing education on your calendar before the first renewal.
Confirm the details with the Department before you apply.