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Escrow Agents

Arizona Adds Consumer Finance & Debt-Related Licenses to NMLS July 1, 2017

NMLS is now receiving new application and transition filings for the following Arizona Department of Financial Institutions licenses. New applicants and existing licensees are now able to submit these records through NMLS.

  • Advance Fee Loan Broker License
  • Escrow Agent License
  • Premium Finance License
  • Sales Finance License


Note: Companies holding these license types are encouraged to submit a license transition request through NMLS by filing a Company Form (MU1) and an Individual Form (MU2) for each of their control persons.  Additionally, for each branch holding these license types, companies are encouraged to complete and submit a Branch Form (MU3). Click here for more information.

This License is required of any person carrying on escrow transactions wherein escrow property is delivered to a person not otherwise having any right, title,or interest in connection with the sale, transfer, encumbrance, or lease of real or personal property to be delivered or redelivered upon the contingent happening or non-happening of a specific event or prescribed act.

Who is exempt from this License?  Please review A.R.S. § 6-811

License Requirements
License Renewal
Forms and Fees
Required Reports
Laws, Rules, Substantive Policy Statements & Regulatory Alerts
Examination

You may submit documents to AzDFI electronically using AzDFI’s encrypted message service.

AzDFI Encrypted Message Service Instructions
AzDFI Encrypted Message Service


Inquiries concerning the preparation and filing of License and renewal applications with the Department should be directed to the Licensing Division at 602-771-2800 or e-mail at licensing@azdfi.gov .  For more detailed contact information, see the “Contact Us” tab.

 

Requirements for License

You must submit to AZDFI a complete application package along with the applicable application fee.

License Renewal

A licensee shall make application for renewal as prescribed by the superintendent and pay the renewal fee prescribed in A.R.S. § 6-126(35)(C)(1) not later than September 30 of each year. For each day after September 30 that the renewal application is not received by the superintendent, the applicant shall pay twenty-five dollars in addition to the fee prescribed by A.R.S. § 6-126. Licenses for which renewal applications are not received by the superintendent by September 30 are suspended, and the licensee shall not act as an escrow agent until the license is renewed or a new license is issued pursuant to A.R.S. Title 6 Chapter 7, Article 2. A license of a licensee that has not filed its renewal application and paid the renewal fee by October 31 expires.
License Year: October 1 thru September 30
Renewal Package Due: August 15 through September 30: Without Penalty
October 1 thru October 31: With Penalty

 

Forms and Fees

Application Fees and Forms for Escrow Agents
Arizona Revised Statues §6-126 et seq.

The following nonrefundable fees are payable to the department with the filing of the following applications:

Description

Fees

Forms

New Application
Each original application shall be accompanied by a nonrefundable fee of one thousand five hundred dollars.

$1,500.00

Branch Office Application
Each branch application shall be accompanied by a nonrefundable fee of five hundred dollars.

$500.00

License Renewal
$1,000 principal office plus $250 for each branch

License Year: October 1 through September 30
Renewal Package Due: August 15 through September 30: Without Penalty
October 1 through October 31: With Penalty

$1,000.00 principal office plus $250.00 for each branch

 

Address Change

$50.00

Name Change
To change the licensee name on a financial institution or enterprise license, two hundred fifty dollars.

$250.00

Change of Control/Ownership change (“COC”)

$0.00

Officer Change

$0.00

License Surrender

$0.00

Duplicate License
To issue a duplicate or replace a lost enterprise's license, one hundred dollars

$100.00

Required Reports

Escrow Agent Semiannual Financial and Escrow Report
A.R.S. § 6-832(B)
Due 8/15  and 2/14 respectively
  Escrow Agent Semiannual Financial and Escrow Report

  Escrow Rate Filing

 

     

 

Laws, Rules, Substantive Policy Statements & Regulatory Alerts

 

Chapter 7   ESCROW AGENTS 

Article 1  Administration
6-801 Definitions
6-802  Acknowledgment of report of examination; penalty
   
Article 2  Licensing
6-811 Exemptions
6-812 Foreign corporations
6-813 License of agent; nontransferable; posting
6-814 Procedure for licensing; surety bond
6-815 Renewal of license
6-816 Fees
6-817 Refusal to license; suspension; revocation
   
Article 3  Regulations
6-831 Records
6-832 Annual audit; report
6-833 Seizure of property of impaired escrow agent
6-833.01 Priority of distribution during receivership
6-834 Deposit of monies; definition
6-835 Limit of legal action
6-836 Commissions; other considerations prohibited
6-837 Duty of escrow agent to produce escrow records for inspection; violation; classification
6-838 Surrender of license
6-839 Continuing jurisdiction
6-840 Prohibitions; definitions
6-841 Internal control structure; definition
6-841.01 Fiduciary duty; notice of returned check
6-841.02 Liability of title insurer; closing protection letter; definition
6-841.03 Notice of uninsured monies; rules
6-843 Disbursements; applicability
   
Article 4  Escrow Rates
6-846 Making of escrow rates
6-846.01 Filing of escrow rates
6-846.02 Justification for escrow rates
6-846.03 Disapproval of escrow filings
6-846.04 Deviations in escrow rates; civil penalty

 

 

Arizona Administrative Code Title 20
Section
R20-4-701. Change in Location of Business
R20-4-702. Account Practices and Records
R20-4-703. Preservation of Records
R20-4-704. Subsidiary Account Records
R20-4-707. Payment to the All Other Escrow Agents Account of the Arizona Escrow Guaranty Fund
R20-4-708. Financial Condition and Resources

Substantive Policy Statements
ARTICLE 3. ESCROW AGENTS
SEMI-ANNUAL REPORT EA-1
ANTI-INDUCEMENT STATUTE EA-2
FUNDS DISBURSEMENT STATUTE  EA-3

ARTICLE 1. GENERAL ADMINISTRATION
APPLICATIONS GE-1
CREDIT REPORTS/ARREST RECORDS  GE-3

Regulatory Alerts


Escrow Agent
Regulatory Alert EA-12-01

Regulatory Alert EA-06-01

 

Examinations

It is the policy of AZDFI to select the most effective and efficient methods of conducting examinations so that significant risks affecting safety and soundness, as well as substantive statutory compliance, can be identified and, if necessary, appropriate supervisory action taken.  Judgment must be utilized to ensure that necessary procedures are performed and ineffective activities are avoided.

The examination fee in accordance with A.R.S. 6-125 is not more than sixty-five dollars per hour for each examiner.  The assessment late penalty is fifty dollars for each day after the thirty day period the enterprise fails to remit the assessment not to exceed the examination assessment amount.

Pursuant to A.R.S. §6-122(B)(5) examination frequency is the accounts held in trust by each escrow agent at least once in every two year period in accordance with A.R.S § 20-1593 and examine or cause to be examined each escrow agent at least once in every four year period or more frequently if the superintendent considers it necessary.

For questions concerning examination of your company or license, please contact the Financial Enterprise Division at 602-771-2777 or e-mail to financial@azdfi.gov.