Arizona Laws 20-1548. Underwriting discrimination
A. Nothing in this article shall be construed as limiting the right of any mortgage guaranty insurance company to impose reasonable requirements upon the lender with regard to the terms of any note or bond or other evidence of indebtedness secured by a mortgage or deed of trust, such as requiring a stipulated down payment by the borrower.
Terms Used In Arizona Laws 20-1548
- Appraisal: A determination of property value.
- Deed: The legal instrument used to transfer title in real property from one person to another.
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Mortgage guaranty insurance: means insurance against financial loss by reason of nonpayment of:
(a) Principal, interest or other sums agreed to be paid under the terms of any note or bond or other evidence of indebtedness secured by a mortgage, deed of trust or other instrument constituting a lien or charge on real estate if the improvement on such real estate is a residential building or a condominium unit or buildings designed for occupancy by not more than four families. See Arizona Laws 20-1541
- Property: includes both real and personal property. See Arizona Laws 1-215
B. A mortgage guaranty insurance company shall not discriminate in the issuance or extension of mortgage guaranty insurance on the basis of the applicant’s sex, marital status, race, color, creed or national origin.
C. No policy of mortgage guaranty insurance, excluding policies of reinsurance, shall be written unless the insurer shall have conducted a reasonable and thorough examination of:
1. The evidence supporting credit worthiness of the borrower.
2. The appraisal report reflecting market evaluation of the property and shall have determined that prudent underwriting standards have been met.