Arizona Escrow Agent Bond

An Arizona Escrow Agent Bond is a type of surety bond that is required by the Arizona Department of Financial Institutions (DFI) for all escrow agents operating in the state. While required by the DFI, the license application is processed by the Nationwide Mortgage Licensing System (NMLS).

The bond is in the amount of $100,000 and is intended to protect the public from financial losses that may arise from the wrongful acts of an escrow agent. The cost of the surety bond is usually between 1% and 3% of the bond amount. Surety1 will shop its many markets to procure the right price at the right terms.

The bond guarantees that the escrow agent will faithfully perform their duties and comply with all applicable laws and regulations. If an escrow agent is found to have committed any wrongdoing, the bond can be used to compensate the injured party. If the surety company pays a claim on the bond, it will seek restitution from the bond principal (licensee).

How to Get an Arizona Escrow Agent Bond

At Surety1.com we make it easy to obtain this surety bond. Our simple, three step process is:

1. Complete the easy to navigate and secure online application. ¹
2. Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day. ²
3. Sign some paperwork and pay the bond premium

Once these steps have been completed, the Arizona Escrow Agent Bond will be shipped to the bond applicant. After receipt, upload in NMLS: under “Surety Bond” in the Document Uploads section of the Company
Form (MU1).
^{1 -The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license.
2- Subject to underwriter approval, based on aggregate surety bond exposure, additional underwriting information may be required}

Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds nationwide since 2003.

How to Get an Escrow Agent License

Obtaining an Arizona Escrow Agent License involves several steps, including meeting eligibility requirements, completing an application, submitting supporting documents, and paying applicable fees. Here’s a comprehensive guide to the process:

Eligibility Requirements – To qualify for an Arizona Escrow Agent License, you must meet the following criteria:

• Age: You must be at least 18 years old.
• Education: You must have a high school diploma or equivalent.
• Experience: You must have at least two years of relevant experience in the escrow industry.
• Criminal Background Check: You must pass a criminal background check.
• Financial Fitness: You must demonstrate financial fitness, including having a clean credit history and no history of bankruptcy.

Application Process

1. Create an NMLS Account: Register for an account with the Nationwide Mortgage Licensing System (NMLS) and complete the MU1 form, which provides information about your company.
2. Complete the MU2 Form: Fill out the MU2 form, which is the individual application for an escrow agent license. This form requires personal details, educational background, work experience, and references.
3. Submit Supporting Documents: Attach copies of the required supporting documents,
   • including your resume,
   • proof of education,
   • proof of experience,
   • and a certified copy of your driver’s license or passport.
4. Pay Application Fees: Pay the non-refundable application fee of $200.
5. Purchase a $100,000 Arizona Escrow Agent Bond. The bond must be in effect before you can submit your application.

Processing and Approval

Once you have submitted your completed application and supporting documents, the Arizona Department of Financial Institutions (DIFI) will review your eligibility and qualifications. They may request additional information or clarification if necessary. The processing time typically takes 4-6 weeks.

If your application is approved, you will receive a notification from the DIFI. You will then be required to complete a pre-licensing course and pass the Arizona Escrow Agent Licensing Exam.

Additional Resources

For more detailed information about the Arizona Escrow Agent License application process, renewal requirements, and other relevant regulations, refer to the Arizona Department of Financial Institutions website: https://difi.az.gov/escrow-agents-dfi

Who Is Required to Have This License?

“Escrow” means any transaction in which any escrow property is delivered with or without transfer of legal or equitable title, or both, and irrespective of whether a debtor-creditor relationship is created, to a person not otherwise having any right, title or interest therein in connection with the sale, transfer, encumbrance or lease of real or personal property, to be delivered or redelivered by that person upon the contingent happening or non-happening of a specified event or performance or nonperformance of a prescribed act, when it is then to be delivered by such person to a grantee, grantor, promisee, promisor, obligee, obligor, bailee or bailor, or any designated agent or employee of any of them. Escrow includes subdivision trusts and account servicing.