Mortgage loan originators must solicit and conduct business solely in the name of which entity?

• A. The consumer
• B. The lending institution
• C. The sponsoring entity
• D. The individual originator

Answer: (C)

Mortgage loan originators must conduct business in the name of the sponsoring entity. This is the licensed entity that sponsors and supervises the originator, takes responsibility for the loan production activity, and must be identifiable in all advertising and disclosures. Using the sponsor’s name helps regulators and consumers know who is accountable and who can be contacted or held responsible for compliance. Wearing a personal name or the consumer’s name would obscure licensing and supervision, and while the sponsoring entity is usually the lending institution, the key point is that the business is conducted under the sponsor’s umbrella, not the originator’s individual name.