A licensed MLO joins a new mortgage company. Before the company can sponsor the individual's license in NMLS, what must occur?
Correct Answer
C) The company must obtain access to the individual's record and establish the required relationship
Why this is correct: In the NMLS, sponsorship is the process where a company authorizes an individual to act as an MLO on its behalf. For a new company to sponsor an MLO, it must first obtain administrative access to the individual's existing NMLS record and then establish the sponsorship relationship within the system. The individual's record and unique identifier remain constant. Why the other choices are wrong: The MLO must create a second unique identifier is false because an individual has only one permanent NMLS unique identifier. The borrower must approve the employment change is incorrect; borrower approval is not required for sponsorship, which is an administrative relationship between the MLO and the company. The prior employer must transfer its own company license is wrong; a company license is not transferred; sponsorship is managed through the individual's record. Exam tip: Sponsorship is about company access to the individual's record. The unique identifier stays with the person, not the employer.
Why This Is the Correct Answer
Why this is correct: In the NMLS, sponsorship is the process where a company authorizes an individual to act as an MLO on its behalf. For a new company to sponsor an MLO, it must first obtain administrative access to the individual's existing NMLS record and then establish the sponsorship relationship within the system. The individual's record and unique identifier remain constant. Why the other choices are wrong: The MLO must create a second unique identifier is false because an individual has only one permanent NMLS unique identifier. The borrower must approve the employment change is incorrect; borrower approval is not required for sponsorship, which is an administrative relationship between the MLO and the company. The prior employer must transfer its own company license is wrong; a company license is not transferred; sponsorship is managed through the individual's record. Exam tip: Sponsorship is about company access to the individual's record. The unique identifier stays with the person, not the employer.
More UST Questions
In a pricing desk question, an audit analyst sees facts tied to Prohibited Misrepresentation. What should the file reflect?
An applicant previously had an MLO license revoked by a state regulator. Under the SAFE Act minimum standards for a new state-licensed MLO license, which statement is correct?
Which statement correctly distinguishes a license suspension from a license revocation?
A state regulator has issued an order suspending an MLO's authority effective immediately. The MLO has filed an appeal, but no stay has been granted. What should the MLO do?
An MLO license application asks whether the applicant has been the subject of a regulatory order. The applicant has a recent consent order that falls within the question. What is the proper response?
Why does NMLS maintain licensing and enforcement information that participating regulators can access?
A regulator issues a final license suspension without giving the MLO notice of the alleged violation or any opportunity to respond, even though applicable law requires both. What issue is presented?
A regulator finds that an MLO charged consumers prohibited fees. Which set of actions is consistent with the enforcement tools contemplated by Regulation H?
An MLO's license status in NMLS changes to suspended, with no stay or reinstatement shown. What is the immediate operational effect?
Which fact most directly supports disciplinary action against an MLO rather than merely a request for additional application information?
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