SB 1204 Summary

• Adds "generally accepted accounting principles" definition to mortgage broker, mortgage banker, and commercial mortgage banker statutes, referencing standards issued by the Financial Accounting Standards Board or International Accounting Standards Board.

• Creates new exemption allowing responsible individuals for mortgage broker and banker entities to reside out-of-state if their parent company obtains a certificate of exemption and meets specified criteria including physical presence in Arizona, no disciplinary actions, and SEC-registered securities.

• Permits responsible individuals of entities to be employees of affiliated entities or parent companies, expanding who can serve in this supervisory role beyond just officers and directors of the licensed entity.

• Authorizes the director to revoke out-of-state exemptions if consumer interests are not met or responsible individual requirements are not satisfied.

• Makes conforming amendments to definitions and qualification sections for mortgage brokers, commercial mortgage brokers, mortgage bankers, and commercial mortgage bankers across Title 6, Chapter 9.