An originator wants to be sponsored by 2 unaffiliated mortgage companies at the same time in one state. What state-specific sponsorship restriction must be checked before accepting simultaneous employment?
Correct Answer
A) Whether the applicable state permits simultaneous sponsorship and what approvals and supervision it requires
A. Check the applicable state’s multiple-sponsorship requirements. NMLS supports sponsorship by more than one company but directs users to state requirements. System functionality does not itself establish legal permission or completed regulator approval. Scope and exceptions: Do not infer that every state permits or prohibits this arrangement. Verify company authority, supervision and regulator action for the specific licenses. Source: Sponsor a License and state-requirements note — https://mortgage.nationwidelicensingsystem.org/knowledge/Products/nmls/pubs/policyGuide/reference/policyGuide/maps/topics/nmlsPG_ch5_MU4_compSponsoringALicense-1.html
Why This Is the Correct Answer
A. Check the applicable state’s multiple-sponsorship requirements. NMLS supports sponsorship by more than one company but directs users to state requirements. System functionality does not itself establish legal permission or completed regulator approval. Scope and exceptions: Do not infer that every state permits or prohibits this arrangement. Verify company authority, supervision and regulator action for the specific licenses.
Why the Other Options Are Wrong
Option B: Whether the companies keep separate pipelines, which overrides any state restriction
Separate pipelines do not override state restrictions.
Option C: Whether the companies operate in different counties, which always permits dual sponsorship
Different counties do not automatically authorize dual sponsorship.
Option D: Whether two NMLS requests were filed, which alone permits dual sponsorship in every state
Filing requests alone does not establish universal permission.
Exam Tip
Distinguish what NMLS can record from what a state permits.
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