A New York originator with no current affiliation takes a loan application in 2026. May the originator take applications while unaffiliated?
Correct Answer
D) The license is not effective during any unaffiliated period
The license of a mortgage loan originator is not effective during any period during which the originator is not employed by, or an independent contractor of, an originating entity. Other choices: ineffectiveness is automatic rather than dependent on an order; compensation is not the test; and no grace period appears. Source: N.Y. Banking Law § 599-i(4)
Why This Is the Correct Answer
The license of a mortgage loan originator is not effective during any period during which the originator is not employed by, or an independent contractor of, an originating entity. Other choices: ineffectiveness is automatic rather than dependent on an order; compensation is not the test; and no grace period appears. Source: N.Y. Banking Law § 599-i(4)
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