Arizona Responsible Individual Services
In order for a mortgage business to obtain a license in Arizona, it must first retain an Arizona Responsible Individual. The mortgage business must continue to employ a Responsible Individual during the time it maintains the mortgage license. The Responsible Individual acts as the mortgage company’s representative with the Arizona Department of Financial Institutions (“AZDFI”), the Arizona mortgage regulator. The Responsible Individual must be a person and not an entity. The person must be a bona fide Arizona resident and have certain experience in the mortgage industry and an acceptable background and credit history.
Carolyn Goldman has been providing Arizona Responsible Individual services for the past 20 years. Ms. Goldman is also a licensed attorney in Arizona and a member of Goldman PLLC in Scottsdale, Arizona. As part of acting as the Responsible Individual, she provides the following services:
qualifying to act as the mortgage business’ Arizona Responsible Individual and serving in that capacity with her name notated on the company’s license;
providing legal advice and guidance as to the applicable Arizona statutes and regulations on an ongoing basis and promptly providing detailed responses to the mortgage company’s questions by email and telephone;
providing written compliance materials which include unwritten interpretations by the AZDFI and the Arizona Attorney General’s Office, upon which the AZDFI focuses during examinations, of which Ms. Goldman has learned through handling many examinations over the years;
working with the mortgage company to fulfill its statutory obligation to allow the Responsible Individual to be in “active management,” by being knowledgeable about the company’s operations, as well as being knowledgeable about the applicable federal and Arizona laws and rules including the Truth in Lending laws, and Regulation Z, and the Real Estate Settlement Procedures Act (“RESPA”), and Regulation X, including the TRID/Know Before You Owe Rule;
fulfilling the “brick and mortar” requirement through use of a business office (not a house or condominium) where the company’s license is displayed as required by law;
use of conference rooms at the business office where regulatory examinations by the AZDFI are held;
providing advice and paralegal assistance with filings with the AZDFI and with filings with the NMLS in coordination with the company’s nationwide counsel or other licensing services when applicable;
handling of, and preparation for, AZDFI examinations and providing paralegal assistance in this preparation as needed;
drafting the response to the report of examination;
making inquiries to the AZDFI on the mortgage company’s behalf;
drafting responses to any consumer complaints;
acting as the Statutory Agent with the Arizona Corporation Commission; and
preparing and filing documents with the Arizona Corporation Commission and Arizona Secretary of State.