An originator misses the 31 December 2026 renewal deadline and continues taking applications into January. Assuming no valid temporary authority or extension applies, may she originate after the license expires merely because reinstatement remains available?
Correct Answer
C) Not permitted: the expired license does not authorize continued origination
C. Reinstatement availability does not authorize continued origination. The question specifies expiration and excludes temporary authority or an extension. NMLS distinguishes an opportunity to request reinstatement from authorization to conduct business. Scope and exceptions: Check the actual regulator-set status and jurisdiction. A timely pending renewal or valid separate authority is not the situation described here. Source: Terminated - Failed to Renew and introductory status-variation note — https://mortgage.nationwidelicensingsystem.org/knowledge/products/nmls/pubs/policyGuide/reference/policyGuide/maps/topics/nmlsPG_licenseStatusDefinitions.html
Why This Is the Correct Answer
C. Reinstatement availability does not authorize continued origination. The question specifies expiration and excludes temporary authority or an extension. NMLS distinguishes an opportunity to request reinstatement from authorization to conduct business. Scope and exceptions: Check the actual regulator-set status and jurisdiction. A timely pending renewal or valid separate authority is not the situation described here.
Why the Other Options Are Wrong
Option A: Permitted for 30 days, after which the license becomes inactive
No thirty-day operating grace period is supplied.
Option B: Unlicensed only where the originator closes 1 or more of the loans
Lack of a completed closing does not grant authority to continue originating.
Option D: Permitted during the reinstatement period that runs into February
The reinstatement window is not permission to operate.
Exam Tip
Confirm current authority before resuming licensed work.
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