ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fourth Legislature

Second Regular Session

House: RA DP 7-0-0-0

HB 2312: financial institutions; insurance; licenses

Sponsor:  Representative Grantham, LD 12

Caucus & COW

Overview

Makes various changes to statute relating to certain financial enterprises. 

History

Pursuant to A.R.S. § 6-121, financial institutions and enterprises are subject to examination and supervision by Arizona Department of Financial Institutions (Department).  Regulated enterprises include money transmitters, holding companies, trust companies, sales finance companies, collection agencies, escrow agents, debt management companies, consumer lenders, mortgage bankers, mortgage brokers, loan originators, premium finance companies, credit unions and banks (A.R.S. § Title 6 – Banks and Financial Institutions).

Provisions

1.    Removes the application fees payable to the Department for moving an enterprise's established office and issuing a duplicate or replacement license.  (Sec. 1)

2.    Removes the requirement for certain financial enterprises to submit a terminated, revoked or surrendered license to the Department.  (Sec. 2, 4, 6, 7, 11, 12, 14, 16)

3.    Removes the requirement for certain financial enterprises to conspicuously or prominently display the license.  (Sec. 2, 3, 5, 7-10, 13, 15)

4.    Removes the requirement that a debt management licensee, when requesting a change to the place of business or the name of the company, submit their license to the Department to permit the change and amend the license accordingly.  (Sec. 4)

5.    Requires all licensed mortgage brokers, mortgage bankers, commercial mortgage bankers and transmitters of money to notify the Department within 15 calendar days if the address of the principal place of business or branch office is changed.  (Sec. 7, 8, 10, 13)

6.    Requires a mortgage broker, a mortgage banker or a consumer lender that employs a loan originator to submit a sponsorship request through a Nationwide Multistate Licensing System (NMLS) that provides written notice that the employer has hired the loan originator.  (Sec. 12) 

7.    Requires a person exempt from licensure as a mortgage broker, a mortgage banker, or a commercial mortgage banker, to submit a sponsorship request through the NMLS that provides a written notice that the exempt person has engaged the loan originator on an exclusive contract.  (Sec. 12)

8.    ☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteProhibits a loan originator from conducting business in this state unless the Department has accepted a sponsorship request through the NMLS.  (Sec. 12)

9.    Removes the requirement that a mortgage broker, a mortgage banker, consumer lender or a registered exempt person keep a copy of the loan originators license at the principal place of business for public inspection during regular business hours.  (Sec. 12)

10.  Prohibits a person from acting as a loan originator on the behalf of a mortgage broker, mortgage banker, consumer lender or an exempt person unless they are a licensed loan originator.  (Sec. 12)

11.  Requires the loan originator to notify the Department within 15 calendar days of a change in the loan originators residential address.  (Sec. 12)

12.  Permits the Director of the Department of Insurance to make the information contained on a license, permit, registration or certification available electronically.  (sec. 17)

13.  Removes archaic language relating to licensure for a mortgage broker, mortgage banker and commercial mortgage banker.  (Sec. 7, 8, 11)

14.  Makes technical changes.  (Sec. 5, 10, 14, 15, 16, 17)

15.  Makes technical and conforming changes.  (Sec. 1-4, 6-9, 11-13)

 

 

 

 

 

 

 

 

 

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Initials JR                    Caucus & COW

 

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