private lending usury laws & licensing

Member since 2023 · 8 posts · 4 votes

Hi everyone, what are the usury limits for a private money lender in the state of Arizona? I read it was 10% in a few different places but that can't be right, that is so low. I also noticed you have to be licensed to be a private money lender in Arizona, what kind of license does this require and what's the best organization to go through?

0 Reply

27 views

Most Popular Reply

Jay HinrichsBusiness Member

Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes

Quote from @Zach Morton:

Hi @Doug Smith - thank you for the website! I just PM'd you

Do actually call the state agency that regulates mortgage lenders/brokers. many states have a mom and pop carve out on the license issue IE you can do a few a year and only have so many in your portfolio without the license.. I know Oregon has one.. But if you going into the business and are going to advertise and so on and so forth then you will want to get licensed.. Which is not all that easy if you have never been in the mortgage lending field.. the NMLS test is heavy to all the federal rules and laws and different acts.. For those that do it for a living its no sweat.. for me since I have only done HML my entire career it was a tough test I passed first time but just barely LOL..
As for usary any local lawyer that does any amount of real estate should get you that answer in a few minutes or off the top of their head.

Podcast Guest on Show #222

JLH Capital Partners51 Review

Website View Page

1 Reply

See this reply in the discussion

5 Replies

Jump to latestLatest

Sort by

Doug SmithPro Member
Lender · Tampa, FL · Member since 2013 · 2k+ posts · 2k+ votes
3y
Licensing is very different from state to state, but a lot of licensing information can be found at https://mortgage.nationwidelicensingsystem.org/slr/Pages/DynamicLicenses.aspx?StateID=AZ. If you struggle to find the answers you seek, I'm happy to talk through things for you. PM me if you want.
1 Reply
Zach Morton
OP
Member since 2023 · 8 posts · 4 votes
3y
Hi @Doug Smith - thank you for the website! I just PM'd you
0 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
3y
Quote from @Zach Morton:

Hi @Doug Smith - thank you for the website! I just PM'd you

Do actually call the state agency that regulates mortgage lenders/brokers. many states have a mom and pop carve out on the license issue IE you can do a few a year and only have so many in your portfolio without the license.. I know Oregon has one.. But if you going into the business and are going to advertise and so on and so forth then you will want to get licensed.. Which is not all that easy if you have never been in the mortgage lending field.. the NMLS test is heavy to all the federal rules and laws and different acts.. For those that do it for a living its no sweat.. for me since I have only done HML my entire career it was a tough test I passed first time but just barely LOL..
As for usary any local lawyer that does any amount of real estate should get you that answer in a few minutes or off the top of their head.
Podcast Guest on Show #222
JLH Capital Partners51 Review
Website View Page
1 Reply
Jared RineBusiness Member
Lender · Sacramento, CA · Member since 2009 · 1k+ posts · 277 votes
3y
@Zach Morton...are you trying to lend your own money/go into private lending? Being a mortgage broker and having experience placing hard/private money in both CA + AZ, when you're lending money through licensed broker channels, it's actually really difficult to usury laws. If you're abiding by the correct licensed channels, I really wouldn't worry about it. And in AZ, it's def not 10%. Money is being put out all day by lenders at 11-12 with points.
Jared Rine United Lending Partners53 Reviews
View Page
0 Reply
Robin SimonBusiness Member
Lender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes
2y
Quote from @Zach Morton:

Hi everyone, what are the usury limits for a private money lender in the state of Arizona? I read it was 10% in a few different places but that can't be right, that is so low. I also noticed you have to be licensed to be a private money lender in Arizona, what kind of license does this require and what's the best organization to go through?

High level - its going to be more near the 18% level or so, 10% is well below what would be caught up in usury (i think) especially considering today's market rates!
[email protected]
Harpoon Capital515 Reviews
Website View Page
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.