Arizona Responsible Individual Services in Connection with Arizona Mortgage Licensing
Arizona statutes require that an entity applying for a mortgage license in Arizona designate and employ a person who has certain experience in the mortgage industry as well as an acceptable background and financial history. See A.R.S. § 6-943(F). This person is called the “Responsible Individual.”
Carolyn Goldman is a licensed attorney in Arizona who has been providing the service of acting as a Responsible Individual for twenty years. As required by Arizona statute, Ms. Goldman provides this service as a W-2 employee of the mortgage company. Ms. Goldman has represented many mortgage industry licensees during this time and has had significant interaction with the Arizona regulator, the Arizona Department of Financial Institutions (“AZDFI”) in the examination and licensing processes. She has handled many AZDFI examinations over the years which has enabled her to glean information concerning policies and interpretations of law by the AZDFI and the Arizona Attorney General’s Office which is very helpful to licensees in their compliance efforts and examinations. Ms. Goldman was honored to be appointed by the Superintendent of the AZDFI to committees charged with revising the Mortgage Brokers Examination and the Arizona portion of the Loan Originator Examination.
As part of the service of acting as a Responsible Individual, Ms. Goldman provides written and oral guidance concerning the Arizona statutes and regulations which govern mortgage industry licensees and loan originators, A.R.S. § 6-101 et seq. and R20-4-101 et seq. Specifically, Ms. Goldman provides written compliance materials which highlight the matters enforced by the AZDFI and which the AZDFI reviews during examinations. As required by law, Ms. Goldman acts as the licensee’s representative and liaison with the AZDFI, in particular during the examination process.
Ms. Goldman provides additional services incident to acting as the Responsible Individual including assisting with Arizona filings with the NMLS and via the AZDFI’s encrypted email service, renewals, consumer complaints, issuance of licenses and obtaining pre-approval for changes in control, in coordination with the licensee’s nationwide licensing counsel, if applicable. Also as part of the Responsible Individual service, Ms. Goldman provides advice regarding issues of Arizona law related to the mortgage business including promissory notes and deeds of trust, the recordation of documents, title insurance matters, foreclosure, entity formation and filings with the Arizona Corporation Commission and the Arizona Secretary of State and the Arizona anti-deficiency statutes. Furthermore, Ms. Goldman includes as part of her Responsible Individual service, use of a business office to fulfill the “brick and mortar” requirement and acts as the statutory agent with the Arizona Corporation Commission. Ms. Goldman is happy to communicate with interested parties regarding the other services she provides as part of the Responsible Individual function.
Ms. Goldman is also a Member of Goldman PLLC, a law firm located at the Gainey Ranch Financial Center in Scottsdale, Arizona. She concentrates her law practice in complex real estate, business, deed of trust and creditor bankruptcy litigation. Ms. Goldman is the immediate past President of the Real Property Section of the State Bar of Arizona and continues to serve on its Executive Council. She is also a past President of the Scottsdale Bar Association and serves on its Board of Directors. Ms. Goldman is a frequent attendee of conferences of AARMR, the NMLS and the Mortgage Bankers Association and is a member of its Litigation and State Legislative Committees. Ms. Goldman presents on mortgage related topics including RESPA and Affiliated Business Arrangements, TRID, the CFPB and fair lending. Her full biography is available here.
The AZDFI considers the Responsible Individual function to be very important and tests the licensee’s compliance regarding this function in various ways. Therefore, it is critical to retain the appropriate person for this function to avoid civil money penalties and other administrative action and to receive appropriate guidance regarding Arizona statutes and regulations. The person selected must also be trustworthy as he or she must be provided with sensitive and confidential financial and business records. It is also important for referring parties to refer the appropriate person to avoid liability for “negligent referral.” See The Importance of Selecting an Appropriate Responsible Individual.