A. Before payment of any money by an investor in connection with a mortgage loan, a licensee shall provide to an investor that is not a financial institution, state or national bank, state or federal savings and loan association, state or federal savings bank, state or federal credit union, financial enterprise, licensed real estate broker or salesman, profit sharing or pension trust or insurance company:

Terms Used In Arizona Laws 6-907

  • Bank: means a corporation that holds a banking permit issued pursuant to chapter 2 of this title. See Arizona Laws 6-101
  • Deputy director: means the deputy director of the financial institutions division of the department. See Arizona Laws 6-101
  • Enterprise: means any person under the jurisdiction of the department other than a financial institution. See Arizona Laws 6-101
  • Financial institution: means banks, trust companies, savings and loan associations, credit unions, consumer lenders, international banking facilities and financial institution holding companies under the jurisdiction of the department. See Arizona Laws 6-101
  • including: means not limited to and is not a term of exclusion. See Arizona Laws 1-215
  • Investor: means a person who lends or invests money in mortgage loans. See Arizona Laws 6-901
  • Licensee: means a person licensed under this article. See Arizona Laws 6-901
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • Mortgage broker: means a person who is not exempt under section 6-902 and who for compensation or in the expectation of compensation either directly or indirectly makes, negotiates or offers to make or negotiate a mortgage loan. See Arizona Laws 6-901
  • Mortgage loan: means a loan secured by a mortgage or deed of trust or any lien interest on real estate located in this state created with the consent of the owner of the real estate. See Arizona Laws 6-901
  • Mortgage loan: A loan made by a lender to a borrower for the financing of real property. Source: OCC
  • Mortgage loan closing: means the day by which all documents relating to the mortgage loan have been executed and recorded and all monies have been accounted for under the terms of the escrow instructions. See Arizona Laws 6-901
  • National Bank: A bank that is subject to the supervision of the Comptroller of the Currency. The Office of the Comptroller of the Currency is a bureau of the U.S. Treasury Department. A national bank can be recognized because it must have "national" or "national association" in its name. Source: OCC
  • Property: includes both real and personal property. See Arizona Laws 1-215

1. An opinion from an independent source stating the value of the property subject to the mortgage loan being made or sold. The opinion shall state the value of the property as it exists on the date of the opinion.

2. A copy of the preliminary title report that states the condition of title and discloses any encumbrances, assessments and liens of record on the property securing the mortgage loan being made or sold.

3. A disclosure statement that includes the following information:

(a) The name and address of the fee owner of the property securing the mortgage loan being made or sold.

(b) Information relative to the ability of the borrower to meet the obligations of the mortgage loan.

(c) A legal description or address of the property securing the mortgage loan being made or sold.

(d) The existence of any improvements on the property or any utilities on or adjacent to the property that will serve the property.

(e) The terms and conditions of the mortgage loan being made or sold, including the principal balance owed and the status of principal and interest payments thereon.

(f) The terms and conditions of all liens on the property securing the mortgage loan being made or sold.

(g) A statement as to whether the mortgage broker is acting as principal or agent in the transaction.

(h) Any additional information prescribed by the deputy director.

B. After using the licensee’s best efforts to verify all of the information required by this section, the licensee shall sign the statement attesting to the validity of the information to the best of the licensee’s knowledge and belief. The licensee shall maintain a record of acknowledgment from the lender of the receipt of this information for not less than two years from the date of the mortgage loan closing.