An originator resigns on 10 March and starts at a new company on 1 April. Her NMLSR record still shows the old sponsorship. If this state's licensing rules require effective employer sponsorship, when may she begin originating for the new company?
Correct Answer
A) She may not originate until the new sponsorship is filed and effective
A. Wait until the required new sponsorship is effective. The stem specifies a state requiring effective employer sponsorship. An outdated record naming the former employer does not establish authority to originate for the new one. Scope and exceptions: This is not a claim that every state has identical sponsorship rules. Confirm regulator approval and current authority; mere submission may not make sponsorship effective. Source: Approved - Inactive and 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
A. Wait until the required new sponsorship is effective. The stem specifies a state requiring effective employer sponsorship. An outdated record naming the former employer does not establish authority to originate for the new one. Scope and exceptions: This is not a claim that every state has identical sponsorship rules. Confirm regulator approval and current authority; mere submission may not make sponsorship effective.
Why the Other Options Are Wrong
Option B: She may originate from 1 April, since her individual license is active
The start date and license record alone do not meet that prerequisite.
Option C: She may originate once the old employer removes its sponsorship record
Removing the old sponsor does not establish the new sponsorship.
Option D: She may originate for 30 days under the previous sponsorship on record
No thirty-day operating grace period is supplied.
Exam Tip
A change of employer requires checking authority, not just updating employment dates.
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