How to Get Your Mortgage License in Arizona

Who Needs an Arizona MLO License?

If you take residential mortgage loan applications or offer or negotiate loan terms for pay in Arizona, you need a mortgage loan originator license. Loan officers at mortgage companies and brokerages are licensed through the state. Loan officers employed by federally chartered banks register through NMLS instead of getting a state license.

Step 1: Create Your NMLS Account

Everything runs through NMLS. Create your individual account to get your NMLS ID. That number follows you through your education, your test, your application and every state license you ever hold.

Step 2: Complete the Prelicensing Education (National Course Plus Arizona Hours)

Arizona requires 20 hours of NMLS approved education, and 4 of those hours must cover Arizona mortgage law. The federal topics are set by the SAFE Act: 3 hours of federal law, 3 hours of ethics and 2 hours on nontraditional mortgage products.

Most students meet the requirement with two pieces: the 20 hour national course and a 4 hour Arizona course. Your completed education stays valid for three years, so you have time to finish the rest of the steps. Here is a closer look at the Arizona education rulesPre License Arizona Mortgage Pre Licensing Education Requirements Explained Resources.

Step 3: Pass the National Test

Every state, including Arizona, uses the same national MLO test, and you need at least 75 percent to pass under the federal minimum standardsRegulations 1008 105 Rules Policy. Study the federal law, ethics and loan product material, then drill with MLO practice questions until the format feels familiar. Here is what to expect on the Arizona examPre License Arizona Nmls Exam Passing Score Format And Success Strategies Resources.

Step 4: Background Check and Credit Report

Through NMLS, you submit fingerprints for an FBI criminal background check and authorize a credit report. Arizona reviews both for financial responsibility, character and general fitness. Here is what the background checkPre License Arizona Mortgage License Background Check Requirements Resources looks for, and how the credit reviewPre License Can I Get My Mlo License With Bad Credit Resources works.

Step 5: Apply and Get Sponsored

Submit your license application to Arizona DIFI through NMLS. Your license becomes active once a licensed mortgage company sponsors you, so many people line up an employer while they finish the earlier steps.

How Long It Takes

Many people finish in one to three months. The pace depends on how quickly you complete your education, when you can test, how long the background review takes and how soon you are sponsored. Here is the typical licensing timelinePre License How Long Does It Take To Become A Mortgage Loan Originator Resources.

What Can Slow Down Your Arizona License?

• Finishing the national course but forgetting the Arizona hours.
• Booking the test before your practice scores are steady.
• Background or credit items that need written explanations.
• Waiting until you are licensed to look for a sponsoring company.