| (a) Sponsorship Required. A mortgage company acts by
and through one or more originators who must be sponsored by the mortgage
company in NMLS. In order to sponsor an originator, the mortgage company
must first register a relationship with the originator in NMLS. Once
such relationship has been registered, the mortgage company may then
file a request in NMLS to establish sponsorship of the originator.
An originator must make corresponding license record amendments in
NMLS in order to establish such sponsorship, as provided by this section.
Sponsorship is not effective until the sponsorship request has been
reviewed and approved by the Department. A mortgage company must not
allow an individual to act on its behalf in the capacity of an originator
until such sponsorship has been established and is effective.
(b) Responsibility for Originator's Actions. By sponsoring
an originator, or otherwise allowing an individual to act on its behalf
in the capacity of an originator, that mortgage company and the Qualified
Individual for the mortgage company each assumes responsibility for
the actions of such originator or individual acting in the capacity
of an originator. As provided by Tex. Fin. Code § 156.201, all
violations of law by an originator or individual acting in the capacity
of an originator are deemed to be attributable and imputed to the
mortgage company sponsoring the originator or for which the individual
acting as an originator was allowed to act, and the Commissioner may
seek disciplinary action against the mortgage company, the Qualified
Individual for the mortgage company, and the originator simultaneously
for the same conduct giving rise to the alleged violation. As a result,
a mortgage company and its Qualified Individual are both charged with
knowledge of and must ensure compliance by their sponsored originators
with the requirements of Finance Code Chapters 157 and 180, and the
requirements of the Department's rules pertaining to originators contained
in Chapter 81 of this title (relating to Mortgage Bankers and Residential
Mortgage Loan Originators).
(c) Termination of Sponsorship. Sponsorship may be
terminated by either the sponsoring mortgage company or the sponsored
originator. If sponsorship is terminated, the party terminating the
sponsorship must immediately make a license record amendment in NMLS
notifying the Department that the sponsorship has been terminated,
as provided by Tex. Fin. Code §156.211 and §157.019.
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