An Arizona mortgage broker bond is a surety bond you must file with the Arizona Department of Insurance and Financial Institutions (DIFI) to get and keep your mortgage broker license. The amount is $10,000 if your investors are limited solely to institutional investors, or $15,000 if your investors include any noninstitutional investors. It is required under A.R.S. § 6-903 and protects anyone harmed by your wrongful act, default, fraud, or misrepresentation. You do not pay the full bond amount. You pay a yearly premium based mainly on your credit.
| Item | Detail |
|---|---|
| Who requires it | Arizona Department of Insurance and Financial Institutions (DIFI) |
| Governing law | A.R.S. § 6-903 |
| Official form | DIFI mortgage broker surety bond form [VERIFY against the DIFI mortgage broker bond form] |
| Bond amount | $10,000 if investors are solely institutional; $15,000 if any noninstitutional investors |
| Premium basis | A percentage of the bond amount, based mainly on your credit (see cost section) |
| Coverage | Payable to anyone injured by your wrongful act, default, fraud, or misrepresentation, and to the State of Arizona for that person’s benefit |
How much is the bond, and which amount applies to me?
Arizona sets your mortgage broker bond amount by the kind of investors you work with, not by your loan volume, under A.R.S. § 6-903.
| Your investors | Required bond amount |
|---|---|
| Limited solely to institutional investors | $10,000 |
| Include any noninstitutional investors | $15,000 |
Under Arizona law, institutional investors include banks, savings and loan associations, savings banks, credit unions, federal or quasi-federal government agencies, financial enterprises, licensed real estate brokers or salespersons, profit sharing or pension trusts, and insurance companies. If any of your investors fall outside those categories, you need the $15,000 bond. [VERIFY against A.R.S. 6-901 for the exact, current definition of institutional investor.]
What does the bond cover?
An Arizona mortgage broker bond protects the public, not you. Under A.R.S. § 6-903, it is payable to any person injured by the wrongful act, default, fraud, or misrepresentation of the licensee or the licensee’s employees, and to the State of Arizona for the benefit of the injured person. It is conditioned on your faithful compliance with Arizona’s mortgage broker law. If the surety pays a valid claim, you must repay the surety in full.
How much does the bond cost?
You do not pay the full bond amount. You pay a yearly premium, which is a percentage of the bond amount based mainly on your personal credit, plus your business finances and experience.
[CLIENT FLAG: premium percentage by credit tier (for example, strong credit X percent, fair credit Y percent), plus one real worked example such as a $15,000 bond at $Z per year.]
We quote your exact rate before you commit to anything.
Is this the same as a mortgage banker or loan originator bond?
No. A mortgage broker license is separate from a mortgage banker license (A.R.S. § 6-943) and from a loan originator license, and each carries its own bond. This page covers the mortgage broker bond under A.R.S. § 6-903. If you are licensed as a mortgage banker or a loan originator, your bond amount and rules are set by those provisions instead.
How do I get bonded and file with DIFI?
- Apply for your mortgage broker license with the Arizona Department of Insurance and Financial Institutions.
- Determine your amount: $10,000 if your investors are solely institutional, or $15,000 if any are noninstitutional.
- Purchase the bond from a surety. The surety reviews your credit and sets your premium.
- File the executed bond on the DIFI form with your license application.
- Keep the bond in force for as long as you hold the license.
Frequently asked questions
How much is an Arizona mortgage broker bond?
It is $10,000 if your investors are limited solely to institutional investors, or $15,000 if any of your investors are noninstitutional. You pay only a yearly premium of that amount, not the full sum.
Who requires it?
The Arizona Department of Insurance and Financial Institutions (DIFI), as a condition of your mortgage broker license under A.R.S. § 6-903.
What is an institutional investor?
Generally banks, savings institutions, credit unions, government agencies, financial enterprises, licensed real estate brokers or salespersons, pension or profit sharing trusts, and insurance companies. Working with anyone outside those categories moves you to the $15,000 bond.
What does the bond protect against?
It pays anyone harmed by a licensee’s wrongful act, default, fraud, or misrepresentation, and runs to the State of Arizona for the injured person’s benefit.
Is this the same as a mortgage banker bond?
No. Mortgage banker and loan originator licenses are separate and carry their own bonds.
What happens if my bond lapses?
The bond is a condition of your license. Losing it puts your license at risk, so you must keep it in force while you operate.
