Bill Text: AZ HB2097 | 2015 | Fifty-second Legislature 1st Regular | Engrossed
Bill Title: Loan originators; advance fee loans
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2015-03-30 - Chapter 97 [HB2097 Detail]
Download: Arizona-2015-HB2097-Engrossed.html
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House Engrossed |
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State of Arizona House of Representatives Fifty-second Legislature First Regular Session 2015
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HOUSE BILL 2097 |
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AN ACT
repealing section 6-991.06, Arizona Revised Statutes; amending sections 6‑991.07 and 6-1305, Arizona Revised Statutes; relating to the department of financial institutions.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Repeal
Section 6-991.06, Arizona Revised Statutes, is repealed.
Sec. 2. Section 6-991.07, Arizona Revised Statutes, is amended to read:
6-991.07. Examination; fee; definition
A. Each applicant for an original loan originator license, before issuance of the license, shall take and pass an examination given under the supervision of the department or its designee. The examination must reasonably examine the applicant's knowledge of all of the following:
1. The obligations between principal and agent.
2. The applicable canons of business ethics.
3. This article and the rules adopted under this article.
4. The arithmetical computations common to mortgage brokerage.
5. The principles of real estate lending.
6. The general purposes and legal effect of mortgages, deeds of trust and security agreements.
7. The terms and conditions of conforming and nonconforming residential mortgage products.
8. The principles of appraisal independence.
B. The examination is subject to the superintendent's approval.
C. An applicant may take the examination three consecutive times with each consecutive taking occurring at least thirty days after the preceding examination. An applicant who fails the examination on three consecutive occasions must wait at least six months before taking the examination again.
D. All examinations shall be given, conducted and graded in a fair and impartial manner and without unfair discrimination between individuals examined. The committee or the department's designee shall inform the applicant of the result of the examination within thirty days of the examination.
E. The superintendent may determine the fee for each examination. The superintendent may contract for the examination for the licensing of applicants. If the superintendent contracts for the examination, the fee for examination for licenses pursuant to this section is payable directly to the contractor by the applicant for examination.
F. For the purposes of this section, "applicant" means a person who has submitted a completed application in the form prescribed by the superintendent.
Sec. 3. Section 6-1305, Arizona Revised Statutes, is amended to read:
6-1305. Registration; renewal; reporting requirements
A. The superintendent shall register the applicant as an advance fee loan broker when an applicant has fully complied with the provisions of this chapter and the rules prescribed by the superintendent.
B. The superintendent shall immediately notify the applicant by mail upon on registering the applicant as an advance fee loan broker.
C. Registration of an advance fee loan broker shall expire one year from the effective date of registration.
C. A registered advance fee loan broker shall apply for renewal as prescribed by the superintendent not later than June 30 of each year. A registration for which a renewal application is not received by the superintendent by June 30 is suspended and the registered advance fee loan broker may not act as an advance fee loan broker until the registration is renewed or a new registration is issued pursuant to this article. The registration of an advance fee loan broker that has not filed a renewal application and paid the renewal fee by July 31 expires. A registration may not be granted to the holder of an expired registration except as provided in this article for the issuance of an original registration.
D. An advance fee loan broker may annually renew his the broker's registration by filing a supplemental statement showing any changes in the facts set forth in the original application for registration or any previously filed supplemental statement made at the time of annual renewal.
E. An advance fee loan broker shall file a supplemental statement showing any changes in the facts set forth in the original application or in any supplemental statement made at the time of annual renewal within thirty days of a change in any material fact.
