A. A person shall not act as a commercial mortgage banker without a license issued under this article.

Terms Used In Arizona Laws 6-973

  • Commercial mortgage banker: means a person who engages in the following:

    (a) Originating commercial mortgage loans. See Arizona Laws 6-971

  • Deputy director: means the deputy director of the financial institutions division of the department. See Arizona Laws 6-101
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • Generally accepted accounting principles: means United States generally accepted accounting principles issued by the financial accounting standards board or the international financial reporting standards issued by the international accounting standards board. See Arizona Laws 6-971
  • including: means not limited to and is not a term of exclusion. See Arizona Laws 1-215
  • License: means a license issued under this article. See Arizona Laws 6-971
  • Licensee: means a person who is licensed under this article. See Arizona Laws 6-971
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • Own resources: means any of the following:

    (a) Cash, corporate capital, warehouse credit lines at commercial banks, savings banks or savings and loan associations or other sources that are liability items on the person's financial statements. See Arizona Laws 6-971

  • Person: includes a corporation, company, partnership, firm, association or society, as well as a natural person. See Arizona Laws 1-215

B. A person who engages in commercial mortgage banking need not be licensed under article 1 or 2 of this chapter or chapter 7 of this title if the person is licensed under this article.

C. The deputy director shall not grant a commercial mortgage banker‘s license to a person, other than a natural person, who is not registered to do business in this state on the date the license is granted. The deputy director shall not issue to or renew a commercial mortgage banker’s license of an applicant unless the applicant meets all of the requirements prescribed in subsection D of this section. The deputy director shall determine whether the applicant meets the requirements based on the application, and evidence presented at a hearing, if any, or any other evidence that the deputy director may have regarding the applicant’s qualifications.

D. In order to qualify for a commercial mortgage banker’s license or a renewal of such a license an applicant shall:

1. Have at least three years’ experience in the commercial mortgage business or equivalent experience in a related business. If the applicant is not a natural person, the responsible individual as prescribed by section 6-976 shall meet this requirement.

2. Have made in the past or intend to make or negotiate or offer to make or negotiate commercial mortgage loans.

3. Provide the deputy director with a current audited financial statement or that of its parent company prepared by an independent certified public accountant according to generally accepted accounting principles including:

(a) The certified public accountant’s opinion as to the fairness of the presentation according to generally accepted accounting principles.

(b) A balance sheet prepared within the immediately preceding six months and certified by the licensee. The deputy director may require a more recent balance sheet.

(c) If the applicant has begun operations, a statement of operations and retained earnings and a statement of changes in financial position.

(d) Notes to the financial statement if applicable.

4. Have and maintain at all times a net worth of at least $100,000.

E. Notwithstanding subsection D, paragraph 3 of this section, licensees and applicants whose own resources are derived exclusively from correspondent contracts with institutional investors shall provide the deputy director with a current financial statement or that of its parent company prepared according to generally accepted accounting principles including:

1. A balance sheet prepared within the immediately preceding six months and certified by the licensee. The deputy director may require a more recent balance sheet.

2. If the applicant has begun operations, a statement of operations and retained earnings and a statement of changes in financial position.

3. Notes to the financial statement if applicable.

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