Does the state require a physical location within the state?
No.

Is there individual loan officer licensing?
Yes.

What are lenders, brokers and loan officers called?
Arkansas uses the terms mortgage banker, mortgage broker and loan officer.

What is the cost of a license? Surety bond? Are there net worth requirements?
An applicant for initial licensure must pay a filing fee of $750; the application fee for individuals applying to become licensed loan officers is $50. Mortgage banker and mortgage servicer applicants must post a $100,000 surety bond, mortgage broker applicants must post a $50,000 surety bond. An audited financial statement is also required for the mortgage banker license application, showing a minimum net worth of $25,000. A broker may submit an unaudited financial statement with an attached certification. Each applicant for a mortgage broker, mortgage banker or mortgage servicer license must meet the following requirements: If the applicant is a sole proprietor, the applicant must have at least three years of experience in mortgage lending or other experience or competency requirements the Commissioner may require. If the applicant is a partnership, at least one of the general partners must have at least three years of experience. If the applicant is a corporation, at least one of its principal officers must have at least three years of experience. If the applicant is a limited liability company, at least one of its managers must have at least three years of experience. Each applicant must identify in its application one person with at least three years of experience as the applicant's managing principal. The license must be renewed within 120 days after the end of the licensee's fiscal year. The annual renewal fee is $350. A loan officer's license expires on the last day of the 12th month from the date of issuance. The loan officer renewal fee is $50.

In order to transition to the Nationwide Mortgage Licensing System (NMLS) on January 1, 2009, all licenses issued or renewed in 2008 will expire December 31, 2008. If a license is issued or renewed during the 2008 calendar year, ¼ of the fees shall be charged for each full or partial calendar quarter remaining in the calendar year.

Is there a pre-licensing education requirement? Is there a test?
No.

Is there a CE requirement?
Yes. All loan officers that have held a loan officer license for a period, whether consecutive or not, of one hundred eight (180) days or more, during the calendar year for which continuing education hours are required shall complete eight (8) hours of continuing education annually, at least one (1) hour of which shall be on mortgage industry ethics, by December 31. If more than 8 hours are completed within a year up to 8 hours may be carried over into the following year.

Are there different requirements for mortgage brokers and mortgage lenders (i.e. can you broker under a lender license)?
The application for licensing should indicate which activities (lending and/or brokering) will be conducted by the licensee.

Are there any state specific high cost loan provisions?
Arkansas enacted the Arkansas Home Loan Protection Act which became effective July 16, 2003. The act defines a high-cost home loan as a loan, including an open-end credit plan, in which the following applies:

1. The total loan amount does not exceed $150,000.
   
2. The borrower is a natural person.
   
3. The loan is primarily for personal, family, or household purposes.
   
4. The loan is secured by a one- to four-family residence that is or will be occupied by the borrower as the borrower's principal dwelling.
   
5. The terms of the loan meet or exceed either of these thresholds: the APR test or the points and fees test.

APR test

For first-lien loans, the APR exceeds 8 percent above yield on Treasury securities with comparable periods to maturity. For junior-lien loans, the APR exceeds 10 percent above the yield on Treasury securities with comparable periods to maturity.

Points and fees test

The total points and fees payable by the borrower at or before loan closing exceeds 5 percent of the total loan amount if the total loan amount is $75,000 or more; or exceeds 6 percent of the total loan amount if the total loan amount is more than $20,000 but less than $75,000; or exceeds 8 percent of the total loan amount if the total loan amount is $20,000 or less.