Arizona Origination Reference Guide
- Kacey Olson
Owned by Kacey Olson
| Citation | Topic | Requirement |
| Mortgage Banker Statute / Ariz. Rev. Stat. Ann. §6-946(C) | Advance Fee Agreement - Lender | If a mortgage banker requires an advance or fee to be paid in connection with an application for a mortgage banking loan or mortgage loan, there must be a written agreement. The agreement must be signed by both parties and must contain: (1) terms pertaining to the payment of the fee or disposition of the advance or fee, whether the loan is finally consummated or not; and (2) the term for which the agreement is to remain in force before return of the advance or fee for nonperformance can be required. |
| Mortgage Brokers Statute / Ariz. Rev. Stat. Ann. §6-906(C) | Advance Fee Agreement - Broker | In connection with an application for a mortgage loan of $200,000 or less, a mortgage broker may not accept any monies or documents, except pursuant to a written agreement. The agreement must be signed by both parties and must contain: (1) terms pertaining to the disposition of the monies and documents, whether the loan is finally consummated or not; (2) the term for which the agreement is to remain in force before return of the monies and documents for nonperformance can be required; and (3) an itemized list of all estimated costs to the borrower of obtaining the mortgage loan including all costs charged by third parties. |
| Mortgage Banker Statute / Ariz. Rev. Stat. Ann. §6-947(A) | Authorization To Complete Blank Spaces | Except for employment verifications, verifications of mortgages and loans, and deposit or account verifications, a person, in connection with or incidental to making any mortgage loan, may not induce, require or permit any document to be signed by a party to the transaction if the document contains any blank spaces to be filled in after it has been signed, except that the party may specifically authorize the mortgage banker or the escrow agent handling the transaction, in writing, to complete certain blank spaces. |
| Mortgage Bankers Provisions / Ariz. Rev. Stat. § 6-906(C) | Broker Advance Fee Agreement | This applies to loan amounts under $200,000. This agreement must be provided prior to accepting any monies or documents in connection with an application for a mortgage loan. |
| Reverse Mortgages / Ariz. Rev. Stat. Ann. §6-1703(A) | Counseling Disclosure | Before an originator may accept a final and complete application for a reverse mortgage, or accept any fees or deposits from the borrower, the originator must: (1) provide the borrower with a list of at least 5 housing counseling agencies, including 2 agencies that can provide counseling by telephone; (2) receive certification from the borrower that he or she has received counseling from a housing counseling agency. The certification must be signed by both the borrower and the counselor and must show the date of the counseling and the name and address of both the counselor and the borrower (an electronic copy of the certification is acceptable); (3) the certification date must confirm that the counseling occurred within the 6 months preceding the borrower accepting a final and complete application for a reverse mortgage; (4) the originator must maintain the certification in an accurate, reproducible and accessible format for the term of the reverse mortgage. "Originator" means broker or lender. |
Dual Capacity Disclosure | A mortgage banker or broker may not collect compensation for rendering services as a real estate broker or real estate salesman unless both of the following apply: (1) the mortgage banker or broker is properly licensed by the Arizona Real Estate Department; and (2) the mortgage banker or broker has disclosed to the person from whom the compensation is collected that the mortgage banker is receiving compensation both for mortgage banker services, if applicable, and for real estate broker or real estate salesman services. | |
Mortgage Banker Statutes and Mortgage Broker Statutes / Ariz. Rev. Stat. Ann. §6-947(N) | Permission for Delay in Disbursement | A mortgage banker or broker may not record a mortgage or deed of trust if monies are not available for the immediate disbursal to the borrower unless, before that recording, the mortgage banker or broker informs the borrower in writing of a definite date by which payment will be made and obtains the borrower's written permission for the delay. |
| Reverse Mortgages / Ariz. Rev. Stat. Ann. §6-1703(C) | Pre-Closing Reverse Mortgage Disclosure | At least 10 days before loan closing, the originator must make a statement available to the borrower informing the borrower that his or her liability under the reverse mortgage is limited, and explaining the borrower's rights, obligations, remedies with respect to temporary absences from the home, late payments and payment default by the originator and all conditions requiring satisfaction of the loan obligation. Prior to entering into a reverse mortgage, the originator must fully disclose the following information to the borrower, in writing: (1) all costs charged by the originator, including estate planning, financial advice and other services that are related to the reverse mortgage but that are not required to obtain the reverse mortgage. The disclosure must clearly identify the charges that are required to obtain the reverse mortgage and those charges that are not required. (2) all terms and provisions with respect to insurance, repairs, alterations, payment of taxes, default reserve, delinquency charges, foreclosure proceedings, anticipation of maturity and any additional and secondary liens; (3) the projected total cost of the reverse mortgage to the borrower based on the projected total future loan balance for at least 2 projected loan terms. This statement must include: (a) the cost for a short-term mortgage; and (b) the cost for a loan term equaling the actuarial life expectancy of the borrower. "Originator" means lender or broker. |
Mortgage Banker Statutes and Mortgage Broker Statutes / Ariz. Rev. Stat. Ann. §6-946(C) | Property Appraisal & Other Documents | All documents provided by the applicant or at the expense of the applicant to a mortgage banker or broker, including any appraisals, are the property of the applicant and must, at the applicant's request, be returned to the applicant or transferred to any person designated by the applicant without further expense to the applicant (except for fees for which the applicant has previously contracted) if the loan is not consummated, provided that any such document is not prohibited by law from being transferred or returned. |
| Reverse Mortgages / Ariz. Rev. Stat. Ann. §6-1704(B) | Reverse Mortgage Agreement | The reverse mortgage agreement must prominently disclose the interest rate or other fees to be charged during the period that begins on the date that the reverse mortgage becomes due and payable and that ends when repayment in full is made. |