Notice of termination of sponsorship must be provided to NMLS within how many days?

The correct answer is based on regulatory requirements set forth by the Nationwide Multistate Licensing System (NMLS). In the context of mortgage lending in California, when a sponsorship between a mortgage loan originator and a sponsoring entity (such as a mortgage broker or lender) is terminated, there is a specific timeline that must be adhered to for notifying the NMLS.

The requirement dictates that a Notice of Termination of Sponsorship must be filed within 15 days of the termination date. This provision is critical to ensure that the NMLS can maintain updated records regarding who is authorized to operate under a sponsorship, thereby upholding the integrity and transparency of the mortgage lending process. Adhering to this timeline helps to protect consumers by ensuring that only licensed and properly sponsored mortgage loan originators are engaging in lending activities.

This is why the choice that indicates 15 days aligns correctly with the guidelines outlined for mortgage licensing in California. Understanding the importance of timely reporting in this context helps to reinforce the significance of compliance with regulatory standards in the mortgage lending industry.