The Arizona Department of Financial Institutions (AZDFI) mandates all mortgage brokers hold an active license in order to operate in the state. The license requires a Mortgage Broker Bond which Jet Insurance Company provides. The bond is a financial guarantee from Jet to the AZDFI allowing broker licensing by protecting the public in the event they are financially injured by the fraudulent actions of a mortgage broker. All licensing and other paperwork is done electronically through the Nationwide Multistate Licensing System (NMLS).
Jet is unique in the sense that we allow direct access to the surety carrier for your bond without the need for middlemen brokers slowing down the approval process.
Jet Insurance Company offers the Residential Mortgage Broker Bond and Commercial Mortgage Broker Bond starting at $100 per year or $10 per month. Rates can vary based on the personal credit of the applying officer of the mortgage brokerage. Below are the preferred rates available at Jet.
With Jet, two and three year payment plans are also available. Rates start at $100 and $175, respectively.
The Arizona State Legislature enacted laws that require a mortgage broker license and regulate the operation of any broker in the state. The Arizona Department of Financial Institutions enforces the statutes surrounding mortgage brokerage license protocol, which ultimately promotes the security and safety of the Arizona financial services industry.
A mortgage broker has the opportunity to pursue their own self interest for financial gain through fraudulent and unlawful activities at the expense of their clients. The Mortgage Broker Bond provides a financial recourse to the damaged party. The bond is a tool used by the State of Arizona to protect the public from financial injury using a surety company (Jet) to promise repayment.
It is our goal as a surety to provide that financial protection while giving you the broker for the lowest possible rate for this mandated coverage.
Jet’s online application is effortless. The only information we need is basic business information and a social security number. A soft credit check will take place to review credit score and history. It will only take seconds and won’t affect your credit score at all.
The bond will be available for immediate purchase once you are done with the online application. A digital copy of the bond and receipt will be available moments after purchase.
Yes, Jet will electronically file the bond. Once purchased a digital copy of the original bond will be sent to the NMLS for you. A copy through email will also be sent directly to you by Jet. To avoid confusion, Jet has provided a guideline of how the NMLS bond filing process is conducted.
The process remains identical for new applicants and licensed brokers seeking to update their current bond terms. Simply grant Jet access to your NMLS account, so we can take care of any filing, cancellation, reinstatement, or renewals that you may require.
Any other paperwork outside of bond and application filings can be sent to the following address:
Arizona Department of Financial Institutions
100 N 15th Ave, Suite 261
Phoenix, AZ 85007
Cancellation of the Mortgage Broker Bond can be achieved via mail or email to Jet. Jet will submit cancellation to the NMLS right away, but know that the bond will stay active for a 30-day cancellation period.
Jet will calculate and refund unearned premium from the cancelled bond. We do have to factor in the 30-day cancellation period as the bond is active during that time.
For those on our monthly payment plan we will need to wait 30 days before the auto-withdrawal ends from the time we receive the cancellation notice from you.
No renewal is required if you are participating in Jet’s monthly payment plan! As long as automatic payments continue, the bond will remain active.
For annual payment plans, Jet will notify you regarding the renewal of your bond through email and mail. Jet does not require any additional paperwork to renew your bond; only payment. After renewing, the NMLS will be notified, and a copy of the bond plus receipt of purchase will be sent right to you.
Mortgage brokers should be well aware of the laws and duties they must follow before conducting any business in Arizona. A close inspection of the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (S.A.F.E.) should be conducted. Additionally, a review of Arizona Statutes ARS 6-909 should also be completed. To prevent confusion, Jet has summarized key statutes below:
|Violations and means for bond claim include||Lawful duties include|
|Collecting illegal fees unbeknownst to the debtor||Following bonding requirements to prevent licensure being in jeopardy of revocation|
|Breaching contract by releasing sensitive information such as an address of the debtor||Establishing a written contract between the debtor and lender which is agreed and signed prior to any lending activities|
|Failing to upkeep accurate and current accounting records||Accepting cash and only cash as payment for a mortgage|
|Failing to abide by Securities and Exchange Commission principles when conducting accounting practices||Holding easily accessible accounting records for the superintendent of the AZDFI in case of investigation|
|Providing funding for anything other than a mortgage or commercial mortgage loan||Hiring escrow agents that are registered with the securities and exchange commission|
All complaints of financially injured clients must go through the AZDFI’s complaint portal. Once completed, the AZDFI will conduct their own investigation. Should the mortgage broker be in violation of licensure, disciplinary action would be inflicted by the AZDFI. This may include fines, license suspension, license revocation and/or a claim on the surety bond.
Bond claim paperwork should be sent to Jet immediately. Include any other relevant information pertaining to your case, and we will conduct an investigation on your behalf. Jet will defend our clients against faulty claims.
If your bond claim is valid, Jet will repay those damaged up to the maximum bond limit. Despite funds being settled, the mortgage broker is still liable for their fraudulent actions and must pay the surety company for claim damages. As a surety bond company, Jet acts as an intermediary to send funds to damaged parties, but the debt still needs to be repaid by the mortgage broker.
Yes. If the mortgage broker is dealing with commercial mortgage clients, a Commercial Mortgage Broker bond will need to be obtained as opposed to a standard Mortgage Broker bond.