The Department of Financial Institutions licenses and oversees banks and mortgage companies in Arizona, and provides protection to consumers from predatory lending practices. The Department also issues licenses to mortgage brokers and oversees their activities.
Arizona is a 'title theory' state, which means that title to the property is held in trust by the lender (mortgagee) until the loan is paid in full. State law also allows for a mortgage to operate as a lien upon the real property and for judicial foreclosures through the courts. However, the power of sale provisions in the Deed of Trust make it faster to foreclose through non-judicial means.