Arizona Mortgage Loan Originator

Which agency regulates mortgage loan originators in Arizona?

• AArizona Real Estate Department
• BArizona Department of Financial Institutions (AZDFI)
• CArizona Corporation Commission
• DArizona Attorney General's Office

Arizona primarily uses which type of foreclosure process?

• AJudicial foreclosure only
• BNon-judicial foreclosure through deeds of trust
• CStrict foreclosure
• DAdministrative foreclosure

Under the Arizona Deed of Trust Act, what is the minimum notice period before a trustee's sale?

• A30 days
• B60 days
• C91 days after recording the notice of trustee's sale
• D120 days

How many hours of pre-licensing education are required for Arizona MLO applicants?

• A10 hours
• B15 hours
• C20 hours
• D25 hours

Under Arizona's anti-deficiency statute (ARS Section 33-814), when is a lender prohibited from seeking a deficiency judgment?

• AOn all mortgage loans
• BOn purchase money loans secured by residential property of 2.5 acres or less used as the…
• COnly on commercial properties
• DOnly on FHA loans

What is the passing score for the Arizona state MLO exam component?

• A65%
• B70%
• C75%
• D80%

Which Arizona statute governs the Deed of Trust Act?

• AARS Title 6
• BARS Title 33, Chapter 6.1
• CARS Title 44
• DARS Title 12

How many hours of continuing education must Arizona MLOs complete annually?

• A4 hours
• B8 hours
• C12 hours
• D16 hours

Under Arizona law, does a borrower have a statutory right of redemption after a trustee's sale?

• AYes, 12 months
• BYes, 6 months
• CNo, Arizona does not provide a right of redemption after a trustee's sale
• DYes, 30 days

Under the Arizona Mortgage Banker Act (ARS Title 6, Chapter 9), what is the minimum net worth requirement for a mortgage banker?

• A$25,000
• B$50,000
• C$100,000
• D$250,000

What background check requirements must Arizona MLO applicants satisfy?

• AOnly a state criminal check
• BFBI fingerprint-based criminal background check and credit report authorization through N…
• CA character reference from three friends
• DNo background check is required

Under ARS Section 33-807, what must the trustee include in the notice of trustee's sale?

• AOnly the borrower's name
• BThe property description, recording information, default nature, amount to cure, sale dat…
• COnly the sale date
• DOnly the loan balance

What type of entity regulates mortgage brokers separately from mortgage bankers in Arizona?

• AThey are regulated under the same statute
• BThey are regulated under separate statutes: the Mortgage Broker Act (ARS Title 6, Chapter…
• COnly mortgage bankers are regulated
• DThe federal government regulates both

Under Arizona law, what constitutes a prohibited act for an MLO?

• AOffering the borrower competitive rates
• BMaking false promises or misrepresentations to induce a person to enter into a mortgage t…
• CProviding all required disclosures on time
• DMaintaining complete loan files

In Arizona, what is the maximum interest rate allowed on mortgage loans?

• A6% per annum
• B10% per annum
• CArizona has no specific usury cap on mortgage loans; rates are market-determined subject…
• D18% per annum

What is the license renewal deadline for Arizona MLOs?

• AMarch 31
• BJune 30
• CSeptember 30
• DDecember 31

Under the Arizona Deed of Trust Act, who holds legal title to the property?

• AThe borrower (trustor)
• BThe trustee holds bare legal title for the benefit of the lender (beneficiary)
• CThe lender directly
• DThe county recorder

What enforcement actions can AZDFI take against a mortgage licensee who violates Arizona law?

• AOnly send a warning letter
• BImpose fines up to $1,000 per violation per day, suspend or revoke licenses, issue cease…
• COnly require additional education
• DReport the violation to NMLS only