Is Your Arizona Loan Officer Licensed?

The new SAFE ACT laws went into effect on July 1st 2010 in the state of Arizona and if you are in a position to talk to a consumer about loan products, interest rates and fees or negotiating financing on residential real estate transactions, you are required to be licensed by the state as a Loan Officer. This does not mean you can continue to operate as such just because you have completed part of the requirements and you are waiting for the state to process the backlog of applications. You must have a fully processed and approved license in your possession to originate loans and talk to customers.

What happens if you continue to illegally originate loans without the license? Its a $5000 per day, per file fine. The Arizona Department of Financial Institutions has done a great job at making all of the information available and having the proper educated staff to explain and handle assistance for all interested parties. If you still didn't get your license, it is no one else's fault and you won't be able to say, "I didn''t know!" anymore.

Licensed loan officers are no longer able to fall back stupidity as a reason for breaking the law. It's now their responsibility to know all of the laws and operate within them and can no longer throw their broker under the bus.

I obtained my license on July 2, 2010!

If your loan officer is not licensed, do not refer business to him/her or your transaction could be held up in court! here is a good way to see if loan officers are licensed. Go to NMLS Consumer Access and input the name of your loan officer to see if they have a license, or call me and I'll do it for you.

Michael Manfredi is the CEO of Mortgage Concepts, LLC and Arizona Licensed Loan Officer #150754