Arizona MLOs must complete a total of 8 hours each year, which includes 3 hours of federal law, 2 hours of non-traditional mortgage lending, 2 hours of ethics (including fraud, consumer protection, and fair lending issues), and 1 hour of Arizona-specific education.
The one-hour state portion begins with an overview of the regulatory agency that oversees Arizona MLOs: the Department of Insurance and Financial Institutions. We then examine definitions of various terms important to mortgage professionals, and exemptions to licensing.
After this is a discussion of the many prohibited practices MLOs should refrain from, and a look at other licensing requirements, DIFI fees, and actions that can end in denial, suspension, or revocation of a license.
The state portion ends with a refresher on the Mortgage Recovery Fund to ensure that students fully understand its purpose and function.
The state portion is split into two modules, with a short activity and 5-question quiz following the completion of each module. The course ends with a final exam consisting of 15 questions drawn randomly from material covered in the class.
The seven-hour core portion includes three modules that focus on a major topic area. Recent industry updates and insights are provided.
Course modules include the following:
Module 1: Federal Mortgage Law Updates (3 Hour)
This module covers sweeping federal laws and rules that apply to mortgage loans and mortgage loan originators across the country, including the Equal Credit Opportunity Act, the Fair Credit Reporting Act, legislation pertaining to electronic records and signatures, and other topics. The module also reviews Regulation Z, the Integrated Mortgage Disclosures, and recent updates and insights on how federal oversight affects mortgage lending today.
Module 2: Ethics, Fraud, Consumer Protection, and Fair Lending (2 Hour)
Module two deals with fraud in the mortgage industry, Identity Theft Rules (16 CFR 681), and how to safeguard client data. Several case studies are presented along with other recommendations for compliance with laws like the Mortgage Acts and Practices - Advertising Rule (Regulation N). Other topics emphasized in this module are fair lending, consumer protection, and balancing commercial aspirations with ethical business practices.
Module 3: Non-Traditional Mortgage Lending (2 Hour)
The final module examines non-traditional mortgage loan products like adjustable-rate mortgages and reverse mortgages. Federal Housing Administration updates and changes come first, followed by lending standards for adjustable-rate mortgages. Next comes a review of the Home Equity Conversion Mortgage (HECM) program. Various other types of loans and financing options are also covered, including VA loans, down payment assistance programs, and affordable housing programs.
Each module ends with an assessment that consists of a five-question quiz and an activity in which students will read a short scenario and then answer questions based on course content. To pass the core portion, students must take a 25-question final exam and get a score of at least 70%.
Show Course ID: 1
- Course ID(s): 15103, 15105
- Approved By: NMLS
Mary Tillery is the instructor for all of our MLO continuing education courses. She has been sharing her expertise with fellow mortgage loan originators for more than 35 years as a lending educator. Learn more about Mary’s background here.