A licensed originator lets an unlicensed friend use their pipeline to place 4 loans in 2026 for a share of the fee. May the licensed originator assist the friend in conducting unlicensed origination activity?
Correct Answer
A) Prohibited: assisting an unlicensed individual to conduct the business
A person may not assist, aid or abet an individual in the conduct of business without a license required by the chapter, so the licensee is liable for the arrangement as well as the unlicensed friend. Other choices: staying on the file is the cover the arrangement uses; who pays the friend does not change what the friend is doing; and a prior denial is not an element. Source: Tex. Fin. Code sec. 180.153(7)
Why This Is the Correct Answer
A person may not assist, aid or abet an individual in the conduct of business without a license required by the chapter, so the licensee is liable for the arrangement as well as the unlicensed friend. Other choices: staying on the file is the cover the arrangement uses; who pays the friend does not change what the friend is doing; and a prior denial is not an element. Source: Tex. Fin. Code sec. 180.153(7)
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