Arizona Mortgage License Surety Bond for Bankers, Brokers and Loan Originators
What is a Mortgage Surety Bond?
If you conduct business as a mortgage professional in the state of Arizona, you must be licensed and bonded with the Arizona Department of Financial Institutions through the Nation-wide Multistate Licensing System and Registry (NMLS). The surety bond requirement is enforced to ensure you perform your duties as a mortgage professional ethically and according to the law. Failure to abide by the law can lead to you receiving a claim against your bond by a client.
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In the event of a claim, the surety company that issued your bond will conduct an investigation. A valid claim could result in a payout of up to the full bond amount to the claimant. As the principal of the bond, you are responsible for repaying the surety back in full for a payout on a valid claim.
Who needs to be bonded?
The state issues three types of mortgage professional licenses that require a surety bond.
Mortgage Banker Licensees
The bond amount required for your mortgage banker license depends on the base of your current assets and the open balance of loans contracted the previous year.
Mortgage Broker Licensees
As a mortgage broker, you must purchase and submit a surety bond in the amount of $10,000 or $15,000, depending on the type of investors your agency services. The $10,000 amount satisfies the requirement if the investors serviced are all institutional investors. However, if you also service non-institutional investors, your bond amount must be set at $15,000.
Get quotes for your bond by selecting the appropriate bond type below.
Mortgage Loan Originator Licensees
If you are attempting to get your Mortgage Loan Originator License, you must have coverage in the form of a surety bond or recovery fund. Before purchasing a bond, check with your employer to determine if they have a surety bond with blanket coverage in the amount of $200,000.
How much does an AZ Mortgage Surety Bond cost? [Do I make monthly payments?]
The cost of your Mortgage Surety Bond depends on your license type, the bond amount you require and your credit. Fortunately, you don’t pay the full amount of the bond. The cost of the bond, known as the premium, is a small percentage of the bond amount. Generally, approved applicants with good credit receive quotes in the range of 1%-5% of the bond amount.
Our Mortgage Surety Bonds renew annually. After you pick one of our surety partners’ quotes, you pay the full premium of the bond for the term. We will contact you within ninety days of your bond’s expiration to offer renewal terms.
Can I get a bond with bad credit?
Yes, you may still be eligible for bond quotes even if you have bad credit. The range for the premium should fall between 5%-15% of the bond amount, depending on approval. Our soft credit pulls do not adversely affect your credit score and there is no obligation to purchase if you are not satisfied with your quotes. Get a custom quote for your mortgage bond today!
How to get a Mortgage Banker or Broker License in Arizona?
Mortgage Broker Licensees
- Complete the broker license application through NMLS.
- Pay the processing fee, filing fee and the FBI criminal background check fee.
- You must have the equivalent and related experience located on the NMLS new application checklist.
- Purchase an Arizona Mortgage Broker License Surety Bond.
- Record the name of the responsible individual as the qualifying individual on NMLS for AZ. This individual must meet the following requirements.
- Be a resident of Arizona.
- Be a W2 employee of the company.
- Proof of stability on their credit report and employment history.
- Complete a course of study.
- Pass a mortgage broker’s test.
- If applicable, include copies of formation documentation.
- Include your Certificate of Authority / Good Standing Certificate, which demonstrates the corporation or LLC exists or is authorized to conduct business in the state of Arizona.
- If you are applying as a sole proprietor, include documentation of citizenship or alien status.
- All direct owners with a voting share of 20% or more must pay the applicable fees for individual FBI criminal background checks.
- All individuals with the ability to vote 20% or more of the outstanding voting shares must include a personal financial statement.
- Include verification of experience for the responsible/qualifying individual.
- Letters on company letterhead that provide job description and dates of employment.
- Copies of certificates from mortgage broker courses.
- Copy of the letter from the Arizona Department of Financial Services. (Proof the individual passed the mortgage broker test).
- Include a copy of the lease agreements and/or sublease agreements.
- Any DBAs are to be listed under other trade names on the NMLS Company Form.
- A separate license is required for each “other trade name”.
- DBAs and trade names need to be registered by including an approved copy of your certificate of trade name registration with your application.
Mortgage Banker Licensees
- Complete the broker license application through NMLS.
- Pay the processing fee, filing fee and the FBI criminal background check fee.
- If applicable, include the following:
- For any questions answered “yes” on the disclosure statement, provide supporting documentation.
- Include a copy of your Certificate of Trade Name registration if using a DBA name or other trade name.
- Include a State certified copy of the applicant’s formation documentation. This could be any of the following:
- A corporate charter.
- Articles of incorporation.
- Articles of organization and operating agreement.
- Partnership agreement.
- Include a copy of an Arizona-issued Certificate of Authority and/or Good Standing Certificate.
- Include the current CPA audited financial statement or that of the parent company.
- The CPA must include an opinion of the fairness of the presentation.
- A balance sheet that was prepared within the last six months and certified by the applicant.
- A more recent balance sheet may be required.
- A statement of operations and retained earnings.
- A statement of changes in financial position. Include any notes, if applicable.
- If business files are to be maintained electronically, you will need to contact [email protected].
- Include proof of experience for any person responsible, including the qualifying person.
- You may include past or current employer letters on company letterhead. These must include the job description and dates of employment.
- Include personal financials for each individual with a voting share of 20% or more.
- Include a copy of the lease and/or sublease agreement or rental agreement for the company.
- This copy must be sent directly to the Arizona Department of Financial Institutions.
- Purchase an Arizona Mortgage Banker License Surety Bond.
- Include documentation of citizenship or alien status.
- Include payment for all applicable fees.
- Individual FBI Criminal Background Checks for any direct owners with 20% or more voting share, qualifying individuals.
For any questions related to the licensing process, please contact the licensing division of the Arizona Department of Financial Institutions. You may call them at (602) 771-2800 or send an e-mail to [email protected].
Where is the best place to get a surety bond?
Surety Solutions, A Gallagher Company‘s compares rates with leading surety companies to ensure you get the best value for your bond. Get customized quotes for your mortgage license bond using the buttons below.
Our team issues bonds in Arizona and any other state you require a surety bond. If you have any questions about the required bond, our online application or your quotes, send us a message here or email [email protected]. Get the best deal on your bond today!
Additional Resources
Make sure you get your bond for the correct amount by checking with our calculator.
How to avoid claims on your Mortgage Bond.
Everything you need to know about the Electronic Surety Bond (ESB) process.
Needing a bond for a different state?
Each state has its own surety bond requirements for licenses and permits. Many mortgage professionals operate in more than one state and require additional bonds. Select the state you require a bond in using our map below.
