A company's CRMLA license lapses on 31 December. Its 4 originators hold current individual licenses. May the originators continue originating under that company while its license is lapsed?
Correct Answer
C) None may originate: an individual license needs a licensed sponsor behind it
Sponsorship by a licensed entity is what makes an individual license operative, so a lapse at the company stops all four. Other choices: currency of the individual license is not the same as authority to act; there is no 30-day grace; and no special position attaches to the manager. Source: Cal. Fin. Code § 50140; NMLSR sponsorship
Why This Is the Correct Answer
Sponsorship by a licensed entity is what makes an individual license operative, so a lapse at the company stops all four. Other choices: currency of the individual license is not the same as authority to act; there is no 30-day grace; and no special position attaches to the manager. Source: Cal. Fin. Code § 50140; NMLSR sponsorship
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