A licensed mortgage entity is changing its name.

• A. The DRE must be notified within ten days
• B. The sponsor must be notified within five days
• C. The DFI must be notified within fifteen days
• D. The borrower must be notified within twenty days

Answer: (A)

When a licensed mortgage entity changes its name, the regulator needs to keep the license record accurate so all official documents and consumer interactions reflect the same entity. The Department of Real Estate (the licensing authority in this scenario) requires the entity to notify them within ten days of a name change. This prompt notice lets the regulator update the license, ensuring that all disclosures, contracts, and communications align with the correct legal name and helps prevent confusion or misrepresentation in the market. If the entity fails to notify, it can face penalties or license discipline and may need to take additional steps to maintain compliance. Notifying sponsors, the borrower, or a different regulatory body within other timeframes isn’t the primary requirement here; the key obligation is informing the DRE within ten days.