The Arizona Mortgage Banker Bond is required by the Arizona Department of Financial Institutions. It is a type of surety bond and is required to obtain a license as a mortgage banker in the state. The license is administered by the Nationwide Mortgage Licensing System (NMLS) and the surety bond will be filed electronically by Surety1.com to the NMLS.
In Arizona, a Mortgage Banker is defined as:
A.R.S. Section 6-941 – A “person” who for compensation or in the expectation of compensation either directly or indirectly makes, negotiates or offers to make or negotiate a mortgage banking loan or a mortgage loan. A.A.C. R20-4-102 – “Person” means a natural person or any legal or commercial entity including a corporation, business trust, estate, trust, partnership, limited partnership, joint venture, association, limited liability company, limited liability partnership, or limited liability limited partnership.
According to Arizona Revised Statute Title 6, Chapter 9, Article 2, a mortgage banker is a person “who for compensation or in the expectation of compensation either directly or indirectly makes, negotiates, or offers to make or negotiate a mortgage banking loan or a mortgage loan”. In order to become a licensed mortgage banker in the State of Arizona, all applicants must file a surety bond with the Superintendent of the Department of Financial Institutions. The bond ensures that the principal will faithfully comply with the provisions of Arizona Revised Statute Title 6, Chapter 9, Article 2. Any person injured by wrongdoing of the Principal has a right to compensation from the bond.
$25,000 if If your investors are limited solely to Institutional Investors, otherwise, the required Arizona Mortgage Bankers Bond amount is $100,000.
According to the Nationwide Mortgage Licensing System, and “institutional investor” includes a(n):
Institutional investor” means a state or national bank, a state or federal savings and loan association, a state or federal savings bank, a state or federal credit union, a federal government agency or instrumentality, a quasi-federal government agency, a financial enterprise, a licensed real estate broker or salesman, a profit sharing or pension trust, or an insurance company.
The Arizona Mortgage Banker Bond is continuous in nature; therefore, it remains in full force and effect until the bond is cancelled. The bond may be cancelled by the Surety at any time with 30 days written notice to the Superintendent of Financial Institutions of the State of Arizona.
At Surety1.com we make it easy to apply for the required surety bond. Our simple 3 step process is:
Once these steps are completed, the Arizona Mortgage Banker Bond will be filed electronically by Surety1.com with the NMLS.
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.