The Arizona Department of Financial Institutions (“AZDFI”) has signficantly reduced the time periods in which mortgage industry applications are processed and approved.  In my experience, mortgage banker applications have recently been approved in two days which in the past would have required at least a two month time period. It is still very important to make sure that all required documents and information are provided through the Nationwide Multistate Licensing System & Registry (NMLS) and the AZDFI’s encrypted email service at the time of initial application to achieve this result.

In the AZDFI’s recent newsletter, it reported that during 2018 the following reductions in processing and approval times occurred:  “Collections agencies from 115 days to 3 days, commercial mortgage bankers from 33 days to 2 days; commercial mortgage brokers from 65 days to 6 days; consumer lenders from 114 days to 8 days; escrow agents from 133 days to 6 days; mortgage bankers from 85 days to 5 days; loan originators from 29 to 10 days; mortgage brokers from 66 to 3 days; money transmitters from 167 days to 3 days; sales finance companies from 48 days to 1 day.  AZDFI Newsletter dated April 20, 2018.

The AZDFI has also transitioned the application process to the NMLS for certain non-mortgage licensees, including collection agencies, consumer lenders, debt management companies, money transmitters, escrow agents, premium finance companies, sales finance companies and advance fee loan brokers.  The AZDFI reports that it has implemented this conversion to the NMLS to help increase the efficiency of the application process for both these licensees and the AZDFI.

In addition, the AZDFI began utilizing the NMLS’ “Streamlined Renewal Feature” for renewal applications for 2018 for mortgage industry licensees.  This allowed mortgage licensees to use an electronic renewal process. Use of this electronic renewal process signficantly reduced renewal application processing times.  The AZDFI reported in its recent newsletter that the processing time for a renewal application in 2017 was 44 days and this was reduced in 2018 to only 4 days.