For the past few weeks I have been looking into how the SAFE Act will impact the state of Arizona. This state’s been on our “watch list” for mortgage education for years. It’s on our side of 
the country and we’ve been offering real estate continuing education there for years…why not offer mortgage training?
Currently the Arizona Department of Financial Institutions (DFI) is in charge of licensing, supervising, and regulating commercial mortgage bankers, mortgage brokers and mortgage bankers. In the past, mortgage loan originators fell under the mortgage broker’s license for disciplinary purposes. However, the 2008 legislature passed SB 1028 which makes loan originators subject to regulation by DFI.
So what does this mean?
Beginning July 1, 2010, loan originators have to be licensed by DFI. To be licensed, it looks like they will need 33 hours of education (a mandated 3-hours of federal law, 3-hours ethics, 2-hours lending standards). Plus loan originators will need to pass a state exam in order to prove they have knowledge about federal and state laws.
They will also need to register with the Nationwide Mortgage Licensing System (NMLS), deposit a bond, submit fingerprints to DFI for a background investigation, and deposit $100 into the Mortgage Recovery Fund.
Under current laws, only mortgage brokers need to take a 24-hour live class and pass a state exam administered by DFI. Since the education has to be live, ProSchools has not developed the training.
ProSchools will develop an exam prep to help people prepare for the state exam once we get a hold of a detailed exam outline. Looks like July 2010 gives us a little time to dig one up! ProSchools is also looking into creating a Spanish version exam prep. Will keep watching the Arizona website for more details.