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ARIZONA STATE SENATE
Fifty-Fourth Legislature, Second Regular Session
financial institutions; insurance; licenses
Purpose
Modifies requirements for licenses issued by the Financial Institutions Division of the Department of Insurance and Financial Institutions.
Background
Laws 2019, Chapter 252 absorbed the Department of Financial Institutions (DFI) into the Department of Insurance (DOI) and renamed DOI the Arizona Department of Insurance and Financial Institutions (DIFI), effective July 1, 2020. DIFI assumes the responsibilities that are prescribed to DFI and DOI.
Beginning July 1, 2020, the Financial Institutions Division of DIFI (Division) assists the Director of DIFI in the execution of the laws of Arizona relating to financial institutions and enterprises (A.R.S. § 6-110). The Division licenses, supervises and regulates state-chartered financial institutions and enterprises and is responsible for annual assessments of the financial institutions and enterprises to ensure the safety and stability of the financial services industry (A.R.S. § 6-121).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Allows the Director of DIFI to make the information contained on a license, permit, registration, certification or other similar authorization available electronically.
2. Removes the requirement that the following licenses must be prominently displayed by the licensee:
a) consumer lender license;
b) debt management company license;
c) escrow agent license;
d) mortgage broker license;
e) commercial mortgage broker license;
f) mortgage banker license;
g) commercial mortgage banker license;
h) money transmitter license; and
i) deferred presentment services license.
3. Requires a mortgage broker, mortgage banker, a consumer lender that employs a loan originator or an exempt federally chartered savings bank to submit a sponsorship request through a nationwide multistate licensing system and registry or another Division-approved method that provides a written notice that the employer has hired or contracted with the loan originator.
4. Prohibits a loan originator from conducting business in Arizona unless DIFI has accepted a sponsorship request.
5. Removes the requirement that a mortgage broker, mortgage banker, consumer lender or an exempt federally chartered savings bank must keep, maintain and make available a loan originator's license during the loan originator's employment or contract.
6. Prohibits a mortgage broker, mortgage banker, consumer lender or an exempt federally chartered savings bank from allowing a person to act on their behalf unless the person is a Division-licensed loan originator.
7. Requires a licensed mortgage broker, mortgage banker, commercial mortgage banker and money transmitter to notify the Superintendent of the Division within 15 calendar days if the address of the principal place of business or a branch office is changed, rather than to immediately notify the Superintendent of DIFI.
8. Removes the requirement that a mortgage broker, mortgage banker, consumer lender or an exempt federally chartered savings bank must return a loan originator's license to the Superintendent of the Division upon employment or contract termination.
9. Requires a loan originator to notify the Superintendent of the Division within 15 calendar days of a change in the loan originators residential address, rather than to immediately notify the Superintendent of the Division.
10. Removes the requirement that each authorized delegate of a money transmitter license prominently display a Division-prescribed notice indicating the authorized delegate status.
11. Removes the requirement that a mortgage broker, mortgage banker, a commercial mortgage banker or a loan originator must surrender its license to the Superintendent of the Division after requesting, and submitting the associated fee for, a placement into inactive status.
12. Removes the requirement that an escrow agent licensee must surrender its license after the licensee files a statement of intent signifying the desire to surrender the license and the Superintendent of the Division determines that the licensee has discharged all duties.
13. Removes the requirement that a debt management company licensee must surrender their license to the Superintendent of the Division upon termination of the debt management company, a branch office or an agency.
14. Specifies that a debt management company must give a written notice of an address or business name change within 15 calendar days of the change.
15. Removes the requirement that a debt management company licensee must submit their license to the Superintendent of the Division in order to amend the license for a change of address or a business name change.
16. Removes the requirement that a consumer lender, a premium finance company or a deferred presentment company must immediately deliver their license to the Superintendent of the Division on termination of the license by the licensee or on revocation by the Superintendent of the Division.
17. Removes the requirement that the Superintendent of the Division must endorse a change of address for a mortgage broker, commercial mortgage broker, mortgage banker, commercial mortgage banker or a loan originator.
18. Removes the following application fees:
a) $50 to move an established office of an enterprise outside of an established office; and
b) $100 to issue a duplicate or replace a lost enterprise's license.
19. Makes technical and conforming changes.
20. Becomes effective on the general effective date.
House Action
RA 1/27/20 DP 7-0-0-0
3rd Read 2/10/20 46-14-0
Prepared by Senate Research
March 2, 2020
MG/gs