Arizona Mortgage Broker Test Handbook
Page 1
s (“A.R.S.”) require that a license
have an individual to be its Res
p
on
Overview
Arizona Revised Statute d
Mortgage Broker must sible
Individual. The individual that will be the Responsible Individual
must complete a course of study, pass a test given by the
Arizona Department of Financial Institutions and must possess
the required experience. The Mortgage Broker Test Handbook is
a useful tool in preparing for the Mortgage Broker Test.
Contents
Overview
Introduction
StateLicensingRequirements
2
2
3
Experience 3
Education 4
Residency 4
Test 5
TestSchedule&Location 5
TestRegistrationandFee 6
DayoftheTest 6
ApplyingforaMortgageBrokerLicense 7
TestContentandOutline 7
ReferencesandResources 8
Arizona
Mortgage
BrokerTest
Handbook
ARIZONADEPARTMENTOFFINANCIALINSTITUTIONS
100N.15
th
Avenue,Suite261
Phoenix,AZ85007
Arizona Mortgage Broker Test Handbook
Page 2
…AResponsibleIndividualshallbearesiden
t
o
f
thisstate,shallbeinactivemanagemen
t
o
f
theactivities
ofthelicenseegovernedbythisarticleandshallhaveno tlessthanthreeyears’experienceinthebusiness
ofmakingmortgagebankingloansorequivalentexperienceinarelatedbusiness….A.R.S.§6‐903
Introduction
It is assumed that the mortgage broker applicant possesses a thorough and
current working knowledge of real estate lending principles and guidelines,
federal and state law, and mortgage regulation acquired through the required
practical mortgage lending experience. This handbook is not intended as a
study guide or test preparation tool, but as information only regarding the
Mortgage Broker Test.
The Mortgage Broker Test is provided to meet Arizona Mortgage Broker
licensing requirements.
For questions regarding the Mortgage Broker Test or Mortgage Broker licensing,
please contact:
Arizona Department of Insurance and
Financial Institutions
100 N. 15
th
Avenue, Suite 261
Phoenix, AZ 85007
(602) 771-2800
https://difi.az.gov/
Our Mission
To license, examine, and supervise Financial Institutions, in compliance with
State law, to ensure safety for the Arizona consumer and soundness for the
Arizona business.
Our Vision
To promote excellence in strong consumer protection, effective regulatory
oversight, and exceptional customer service.
Overview
Arizona Revised Statutes (“A.R.S.”) require that a
licensed Mortgage Broker must have an individual to be
its Responsible Individual. The individual that will be
the Responsible Individual must complete a course of
study, pass a test given by the Arizona Department of
Insurance and Financial Institutions and must possess
the required experience. The Mortgage Broker Test
Handbook is a useful tool in preparing for the Mortgage
Broker Test.
Arizona Mortgage Broker Test Handbook
Page 3
MORTGAGE BROKER STATE LICENSING REQUIREMENTS
Pursuant to A.R.S. § 6-903, A person shall not act as a mortgage broker if the person is not licensed
under this article. A person who brokers only commercial mortgage loans shall obtain either a mortgage
broker license or a commercial mortgage broker license. A person who brokers residential mortgage
loans shall obtain a mortgage broker license. In addition, the Superintendent shall not grant a mortgage
broker license to a person, other than a natural person, who is not registered to do business in this state
on the date of granting the license.
An applicant for an original mortgage broker's license shall meet the following requirements:
1.
Have not less than three years' experience as a mortgage broker or loan originator or equivalent
lending experience in a related business during the five years immediately preceding the time of
application.
2.
Have satisfactorily completed a course of study approved by the Superintendent during the three
years immediately preceding the time of application.
3.
Have passed a mortgage broker's test, pursuant to section A.R.S. § 6-908.
If an applicant is a person other than a natural person, the license issued to it entitles all officers,
directors, members, partners, trustees and employees of the licensed corporation, partnership,
association or trust to engage in the mortgage business if one officer, director, member, partner,
employee or trustee of the person is designated in the license as the individual responsible for the person
under this article. If the natural person is not a resident of this state, an employee of the licensee shall be
designated in the license as the individual responsible for the licensee under the provisions of this article.
For the purposes of this subsection, an employee does not include an independent contractor. A
Responsible Individual shall be a resident of this state, shall be in active management of the activities of
the licensee governed by this article and shall meet the qualifications set forth above.
EXPERIENCE
The applicant shall have not less than three years' experience as a mortgage broker or loan originator or
equivalent lending experience in a related business during the five years immediately preceding the time
of application.
Arizona Administrative Code (“A.A.C.”) Title 20, Chapter 4, Article 9 states:
Equivalent and Related Experience
A.
An applicant may satisfy the three years’ experience requirement of A.R.S. § 6-903 by the types
of lending-related experience listed in this subsection. The Department counts each month in the
following types of work experience toward the three years required for a mortgage broker license,
under A.R.S. § 6-903(B). The Department counts a fractional month of experience, at least 15
days long, as a full month.
1.
Mortgage broker with an Arizona license, Responsible Individual, or branch manager for
a licensee;
2.
Mortgage banker with an Arizona license, Responsible Individual, or branch manager for
a licensee;
3.
Loan officer with responsibility primarily for loans secured by lien interests on real
property;
4.
Lender’s branch manager with responsibility primarily for loans secured by lien interests
on real property;
5.
Mortgage broker with license from another state, or Responsible Individual for a
mortgage broker licensed in another state;
Arizona Mortgage Broker Test Handbook
Page 4
6.
Mortgage banker with license from another state, or Responsible Individual for a
mortgage banker licensed in another state;
7.
Attorney certified by any state as a real estate specialist.
B.
An applicant with insufficient actual experience of the types listed in subsection (A) may satisfy
the remainder of the three years’ experience requirement of A.R.S. § 6-903 by the types of
related experience listed in this subsection. The Department counts each month in the following
types of work experience according to the ratio listed below, of actual experience to equivalent
experience, credited towards qualifying for a license, under A.R.S. § 6-903, or as a Responsible
Individual, under A.R.S. § 6-903. The Department counts a fractional month of experience, at
least 15 days long, as a full month. An applicant receives credit in only one area listed and for not
more than three years’ actual experience. The remaining years of experience required to qualify
for a license shall be obtained from types of work experiences listed in subsection (A).
1.
Attorney without state bar certified real estate specialty...3:2
2.
Paralegal with experience in real estate matters...3:2
3.
Loan underwriter...3:2
4.
Mortgage broker or mortgage banker from another state without license...3:2
5.
Real estate broker with an Arizona license or license from a state with substantially
equivalent licensing requirements...3:2
6.
Escrow officer...3:2
7.
Trust officer with a title company...3:2
8.
Executive, supervisor, or policy maker involved in administering or operating a mortgage-
related business...3:1.5
9.
Title officer with a title company...3:1.5
10.
Real estate broker, not qualified under subsection (B)(5)...3:1.5
11.
Loan processor with responsibility primarily for loans secured by lien interests on real
property...3:1.5
12.
Lender’s branch manager with responsibility primarily for loans not secured by lien
interests on real property...3:1.5
13.
Real property salesperson with an Arizona license or a license from a state with
substantially equivalent licensing requirements...3:1
14.
Loan officer, with responsibility primarily for loans not secured by lien interests on real
property...3:1
EDUCATION
The applicant shall have satisfactorily completed a course of study approved by the Superintendent
during the three years immediately preceding the time of application.
Please review the list of approved Mortgage Broker Course Providers located on the Department’s
website at https://difi.az.gov/sites/default/files/FE-LC-FM-MB-Approved_Mortgage_Broker_Providers.pdf
RESIDENCY
Per statute, the Responsible Individual shall be a resident of this state. A resident of this state means a
natural person domiciled in Arizona.
Arizona Mortgage Broker Test Handbook
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TEST
The applicant shall have passed a mortgage broker's test, pursuant to section A.R.S. § 6-908.
Each applicant for an original license, before issuance of the license, shall personally take and
pass the written test given under the supervision of the Department. The test must reasonably
examine the applicant's knowledge of:
1.
The obligations between principal and agent, the applicable canons of business ethics,
the provisions of this article and the rules adopted under this article.
2.
The arithmetical computations common to mortgage brokerage.
3.
The principles of real estate lending.
4.
The general purposes and legal effect of mortgages, deeds of trust and security
agreements.
The Department shall administer the test to applicants for licenses not less than once every six
months. The Department shall reasonably prescribe the time, place and conduct of testing and
collect a fee for administration of the test to be assessed to all persons taking the test. The fee is
fifty dollars per testing. An applicant may not take the test more than two times within a twelve
month period.
All tests shall be given, conducted and graded in a fair and impartial manner and without unfair
discrimination between individuals tested. The applicant shall be informed of the test results
within thirty days.
For the purposes of this section "applicant" means a person who has submitted a completed
application in the form prescribed by law, accompanied by a letter of inquiry to a surety company
authorized to do business in this state regarding the procurement of a bond pursuant to section
A.R.S. § 6-903, to be issued upon completion of all requirements for the granting of a license.
TEST SCHEDULE AND LOCATION
The Department has elected to administer the Mortgage Broker Test on the 1
st
Thursday of every month
at the offices of the Arizona Department of Insurance and Financial Institutions located at:
100 N. 15
th
Avenue
Phoenix, AZ 85007
The test is administered in the afternoon, beginning at 1:00 p.m. and ends at 4:00 p.m. If more time is
needed to complete the test, a request may be made at that time.
Arizona Mortgage Broker Test Handbook
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TEST REGISTRATION AND FEE
At the time of the test, the following items must have been previously submitted to the Department:
A completed Test Registration Application located at
https://elicense.az.gov/ARDC_HomePage
A copy of your course “Certificate of Completion”
Payment of the test fee in the amount of $50.00.
NOTE: T
HE TEST FEE IS NON-REFUNDABLE.
DAY OF THE TEST
On the day of the test, candidates must bring one government issued picture ID. All candidates will be
required to sign-in prior to testing.
Candidates should bring a non-database type financial calculator, 2-3 #2 pencils (sharpened) and an
eraser. The Department will furnish all test materials, including scratch paper.
The test consists of 100 multiple choice questions. Candidates will be required to comply with the
following:
TURN OFF all electronic devices.
Electronic devices, backpacks, notebooks or other items will be held by the test proctor.
You are allowed a non-database calculator, pencils, erasers and a bottled beverage on the table.
All test materials furnished to you (test booklet, scratch paper and answer sheet) are the property
of AZ-DIFI and may not be duplicated in any way or removed from the test room under any
circumstances.
Any form of cheating, which includes giving or receiving help, talking, copying and/or retaining test
questions will be grounds for immediate ejection from the test and . AZ-DIFI may pursue further action
which may affect your ability to obtain a mortgage broker license.
Test Results:
The results of the Mortgage Broker Test are either pass or fail. In order to pass the test, you must receive
a score of 70% or better. Test results will be e-mailed no later than thirty (30) days of the test date.
APPLYING FOR A MORTGAGE BROKER LICENSE
If you wish to apply for a Mortgage Broker license, you must do so through the Nationwide Multistate
Licensing System & Registry (“NMLS”). User Tools and Tips can be found on the NMLS Resource
Center website at NMLS Resource Center
Arizona Mortgage Broker statutes and rules can be found in A.R.S. Title 6, Chapter 9, Article 1 and
A.A.C. Title 20, Chapter 4.
Arizona Revised Statutes Title 6
Arizona Administrative Code Title 20, Chapter 4
Arizona Mortgage Broker Test Handbook
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TEST CONTENT AND OUTLINE
Prior to an original license being issued, an applicant shall pass the written test given under the
supervision of the Department. The test must reasonably examine the applicant's knowledge of:
A.
Obligations between principal and agent (7%)
Principal and agent law;
Escrow agent law
B.
Canons of business and ethics (7%)
Ethics
C.
Mortgage Broker statutes and rules (48%)
Mortgage broker law;
Recordkeeping requirements of R20-4-917
D.
Math for Mortgage Brokers (5%)
Arithmetical computations common to mortgage brokerage
E.
Principles of real estate (11%)
Real estate lending principles;
Real estate law
F.
Mortgage deed of trusts and security agreements (7%)
Mortgage, deed of trust and security agreement law;
Negotiable instrument law
G.
Federal regulations (15%)
Real Estate Settlement Procedures Act, 12 U.S.C. 2601 through 2617;
Consumer Credit Protection Act, 15 U.S.C. 1601 through 1666j;
Securities law;
Federal Housing Administration, Veterans Administration,
Federal National Mortgage Association, and
Federal Home Loan Mortgage Corporation requirements
REFERENCES AND RESOURCES
A.R.S.Title6,Chapter9
A.A.C.Title20,Chapter4
MortgageBrokerSchoolStudyMaterials
