An originator resigns on 15 June 2026 and starts at a new company 3 weeks later, holding an approved license throughout. In a state requiring active employer sponsorship, may she originate during the gap before the new sponsorship is approved?
Correct Answer
B) No origination until the new employer sponsorship has been approved
B. Do not originate before the required new sponsorship is approved. The question expressly places the originator in a state requiring active sponsorship. Keeping a license record is different from having current authority to conduct licensed activity. Scope and exceptions: Do not generalize the stated state requirement into an identical rule for every jurisdiction. Check the regulator-set status and requirements; this is not a federal-registration or temporary-authority scenario. Source: Approved - Inactive definition — https://mortgage.nationwidelicensingsystem.org/knowledge/products/nmls/pubs/policyGuide/reference/policyGuide/maps/topics/nmlsPG_licenseStatusDefinitions.html
Why This Is the Correct Answer
B. Do not originate before the required new sponsorship is approved. The question expressly places the originator in a state requiring active sponsorship. Keeping a license record is different from having current authority to conduct licensed activity. Scope and exceptions: Do not generalize the stated state requirement into an identical rule for every jurisdiction. Check the regulator-set status and requirements; this is not a federal-registration or temporary-authority scenario.
Why the Other Options Are Wrong
Option A: Origination may continue, because the license itself never lapsed
An unexpired license does not replace the required sponsorship.
Option C: Origination may continue for 30 days after leaving the old employer
The facts provide no thirty-day grace period.
Option D: No origination until 2 years of employment history is re-established
The problem is sponsorship, not rebuilding two years of employment history.
Exam Tip
Verify active authority, not just possession of a license number.
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