Section R20-4-1801. Exemption for an Entity Regulated by an Agency of this State, Other States, or by the United States

A.      The exemption under A.R.S. § 6-942(A)(1) only applies to a person whose offers to make or negotiate a “mortgage banking loan” or a “mortgage loan,” as those terms are defined in

A.R.S. § 6-941, and all mortgage banking loans and mortgage loans made or negotiated by the person are regulated directly by an agency of this state, any other state, or the United States.

B.       The required regulation of the transactions listed in subsection

(A)  includes:

1.        Rules governing a claimant’s accounting and recordkeep- ing practices;

2.        The authority to examine a claimant’s books and records relating to its mortgage banking activities or mortgage lending activities, or both; and

3.        The ability to place a claimant in a receivership or conser- vatorship with regard to the claimant’s mortgage banking activities, mortgage lending activities, or both.

Historical Note

New Section adopted by final rulemaking at 5 A.A.R.

2094, effective June 10, 1999 (Supp. 99-2).