Effective on October 2, 2009, Arizona House Bill (HB) 2143 mandates that all mortgage loan originators operating in the state must be officially employed by either a consumer lender, mortgage banker or a mortgage broker. These mortgage loan originators must also be covered by their employer’s surety bond (mortgage broker bond).
HB 2143 also created a recovery fund, which will be funded by: 1) an amount determined by the Superintendent of Banking for those originators attempting to acquire their original license; and 2) fees acquired via annual license renewals (only when recovery fund drops below $2 million). The recovery fund covers only actual out of pocket losses, as well as court costs and attorney fees, and has a $200K limit per claim against the fund.