Licensing for mortgage lenders in the State of Arizona is regulated by the Arizona Department of Financial Institutions (ADFI). An important step in the licensing process is the submitting and maintaining of a surety bond with the ADFI. If the principal’s (lender) investors are limited solely to institutional investors, the surety bond amount is $25,000. An “institutional investor” is 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. If your investors are other than institutional investors, the surety bond amount required shall be computed on a base consisting of the total assets of the licensee/applicant, plus the unpaid balance of loans which it has contracted to service for others as of the end of the licensee’s/applicant’s fiscal year. It is recommended that you contact the ADFI regarding the bond amount needed for your license.
| Base | Minimum Bond |
|---|---|
| Not over $1,000,000 | $25,000 for the first $500,000, plus $5,000 for each $100,000 or fraction thereof over $500,000 |
| $1,000,001 to $10,000,000 | $50,000, plus $5,000 for each $1,800,000 or fraction thereof over $10,000,000 |
| $10,000,001 to $100,000,000 | $75,000, plus $5,000 for each $18,000,000 or fraction thereof over $10,000,000 |
| $100,000,001 and over | $100,000 |
Applications for licenses are handled by the Nationwide Mortgage Licensing System (NMLS), and additional information can be found on the NMLS website. Licensing costs are $1,600, including the NMLS processing fee, and, if required, a $36.26 fee per FBI criminal background check authorization needed. All fees collected through the NMLS are not refundable.
Pacific Surety offers industry low rates and can obtain approvals for almost all credit situations. Once our simple application has been completed, we can have pricing to you within hours. If you have any specific questions, please contact our knowledgeable underwriting staff.