Arizona License LawIntermediateArizona Exam
An Arizona real estate licensee who is also a mortgage loan originator must comply with licensing requirements under:
AADRE rules only, since Arizona's real estate license already satisfies MLO requirements
BThe Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act) in addition to ADRE rulesCorrect
COnly the federal Dodd-Frank Act, which superseded the SAFE Act's state licensing requirement
DNo additional licensing, since a real estate license already authorizes loan origination
Why The Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act) in addition to ADRE rules Is Correct
Answer B: The Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act) in addition to ADRE rules
Real estate licensees who originate mortgage loans must also be licensed as mortgage loan originators under the SAFE Act, which requires registration with the Nationwide Mortgage Licensing System (NMLS).
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Key Terms to Know
Loan-to-Value Ratio (LTV)
The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
State-Specific Concepts
DRE Regulation
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