When sponsorship is terminated, the originator must turn all records in his or her possession over to:

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Prepare for the Principal Lending Manager (PLM) Test. Access multiple choice questions and flashcards with detailed explanations and hints to enhance your learning experience and boost your confidence for test day.

Multiple Choice

When sponsorship is terminated, the originator must turn all records in his or her possession over to:

Explanation:
When sponsorship ends, the originator must hand over all records in its possession to the sponsoring entity. The sponsor is the party that maintains control and oversight of the loan pool after sponsorship is terminated, so transferring the files ensures continuity for servicing, governance, and regulatory reporting. The borrower doesn’t manage the entire program’s records, regulators don’t take custody of the full file set as a default result of termination, and keeping the records would undermine the sponsor’s ongoing responsibility—so the sponsoring entity is the proper recipient.

When sponsorship ends, the originator must hand over all records in its possession to the sponsoring entity. The sponsor is the party that maintains control and oversight of the loan pool after sponsorship is terminated, so transferring the files ensures continuity for servicing, governance, and regulatory reporting. The borrower doesn’t manage the entire program’s records, regulators don’t take custody of the full file set as a default result of termination, and keeping the records would undermine the sponsor’s ongoing responsibility—so the sponsoring entity is the proper recipient.

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