What defines a subsidiary corporation in this context?

A subsidiary corporation in this context is defined as a corporation that is wholly owned by a licensee. This means that the licensee has complete control over the subsidiary, making it a part of the overall corporate structure of the licensee. In the mortgage lending industry, recognizing the relationships between parent companies and their subsidiaries is crucial for compliance with regulations.

The concept of being "wholly owned" indicates that the licensee holds 100% of the subsidiary's shares, which allows the licensee to exert total control over its operations, governance, and financial decisions. This ownership structure is significant because it ensures that the subsidiary adheres to the same compliance standards as its parent company, thus maintaining regulatory integrity.

Understanding this structure can help in navigating the licensing requirements and operational responsibilities in the mortgage lending space. It also distinguishes subsidiaries from other types of corporations, ensuring clarity in regulatory communications and responsibilities.