Must I get a Mortgage Broker's license? - Posted by Stacy (AZ)

Posted by FJW on January 09, 1999 at 13:54:17:

The norm is you have no problem buying for your own account or selling to institutional buyers. The problems usually arise when advertising to sell and selling to individual buyers(investors). Then you may be required to have a brokers and/or a secureties license.

Again though, you obviously must make sure by determining your state regulations.


Must I get a Mortgage Broker’s license? - Posted by Stacy (AZ)

Posted by Stacy (AZ) on January 09, 1999 at 11:30:31:

I’ve been researching the Arizona revised statutes regarding buying and selling mortgages/trust deeds. My brain is now sloshing in legalese soup! I think I’ve confirmed that when buying or selling notes for one’s own account, there is no license needed. However, it seems clear that when flipping notes, a MB license is required.

John, if I market my business correctly, I should eventually have a steady stream of notes coming across my desk. It seems only logical that the majority of these would not be of interest to me for my portfolio. I had envisioned flipping many of these to institutional buyers and collecting a broker’s fee. But now I’m wondering if I’ll get into trouble acting as a broker without a license, never having taken ownership of the notes. Am I missing something, or do I need to go through the effort to get a broker’s license?

I realize you’re not an attorney in AZ, but do you have any insights?


Re: Must I get a Mortgage Broker’s license? - Posted by John Behle

Posted by John Behle on January 11, 1999 at 13:51:07:

I’m not 100% familiar with the AZ statutes. I used to be, but keeping track of all 50 states and the changing laws has not been my highest priority.

In general, you can buy and sell for your own account. Sometimes there are provisions for brokering to an out of state party or to an institution. You’ll just have to wade through the provisions and laws. One of the best sources can be the other brokers around.

Careful of some of the organizations that publish information about the laws nationwide. I have seen them to be dangerously in-acurate.