By John R. Rapasky

    For the first time ever, beginning July 1, 2010, loan originators must be licensed to originate residential mortgage loans in Arizona.  Each licensee will be required to have a license number, which will be registered with the Nationwide Mortgage Licensing System.  This number will follow the licensee no matter where they work, thus creating a record for each licensee and establishing a system of accountability.  This will prevent licensees from performing misconduct at one company, just to leave that company and perform misconduct at another company.  Individuals who perform loan modifications will also need to be licensed.  You can check to see if your loan originator is licensed by clicking on

In order to acquire a license, the originator must:

  1. Complete a 20 unit pre-licensing course consisting of 3 units of federal law, 3 units of ethics, 2 units of non-traditional mortgage products, 4 units of Arizona mortgage related law (i.e. title, appraisal, real estate, etc.), and 8 units of any other mortgage related courses that contribute to the maintenance and improvement of professional competence (i.e. FHA, VA, Appraisal, etc.)
  1. Pass a mortgage loan originator test which is comprised of two components: a national component and an Arizona state component. Mortgage loan originators must pass each component with a score of 75% or higher.
  1. Be covered under a surety bond or recovery fund.
  1. Not have been convicted of a felony during the seven year period immediately preceding the date of the application or any crime of breach of trust or dishonesty, fraud or money laundering at any time preceding the date of the application

Each year, in order to renew their license, the licensee will be required to complete 8 continuing education units consisting of at least 3 hours of federal law, 2 hours of ethics – including instruction on fraud, consumer protection and fair lending issues, and 2 hours of training related to lending standards for the nontraditional mortgage product marketplace.

With the requirement of licensure, the intent is that originators will be competent and will offer appropriate products to customers based on their circumstances, and will not make any misrepresentations in the application process.

We, at Counsel Mortgage, welcome the requirement of loan officer licensing.  By July 1st, all of the originators working at Counsel Mortgage will be licensed.  I alreday have my license and am ready to help you with your mortgage needs.  Please contact us for professional advice regarding your mortgage.

John Rapasky is the President of the Counsel Mortgage Group, LLC. You can learn about them at www.counselmortgage.comCopyright © 2009 Counsel Mortgage Group®, LLC

MB# 0909580 NMLS# 178927 AZ LO# 0911590 NMLS LO# 179539