|(a) Sponsorship Required. In order to act in the capacity
of an originator an originator's license must be sponsored in NMLS
by a mortgage company licensed under Finance Code Chapter 156 or a
mortgage banker registered under Finance Code Chapter 157. In order
to establish sponsorship by a mortgage company or a mortgage banker
the originator must amend his or her NMLS license record (MU4 filing)
to reflect employment by such mortgage company or mortgage banker
and grant such mortgage company or mortgage banker access to his or
her license records in order to allow the mortgage company or mortgage
banker to register a relationship with the originator in NMLS. The
mortgage company or mortgage banker must make corresponding license
record amendments in NMLS in order to establish such sponsorship as
provided by this section, including a request to establish such sponsorship.
Sponsorship is not effective until the mortgage company's or mortgage
banker's sponsorship request has been reviewed and approved by the
Department. A licensee must not act or attempt to act in the capacity
of an originator on behalf of a mortgage company or mortgage banker
until sponsorship with such mortgage company or mortgage banker has
been established and is effective.
(b) Termination of Sponsorship. Sponsorship may be
terminated by the sponsoring mortgage company or mortgage banker,
or the 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.
(c) Lapsing of Sponsorship; Inactive Status. Failure
by an originator to maintain sponsorship will result in the license
automatically reverting to an inactive status, during which time the
licensee must not act or attempt to act in the capacity of an originator.