If a company were to lose their Principal Lending Manager, what happens with the other licensees?

When a company loses its Principal Lending Manager (PLM), all licensees affiliated with that company are affected and placed in inactive status. This is because the PLM is a critical figure responsible for compliance with regulatory standards and overseeing the activities of all licensed employees within the organization. Without a PLM, the company cannot operate in compliance with state regulations, which stipulate that a licensed lending company must always have an active PLM in place.

Therefore, the licensees can no longer perform their duties until a new PLM is appointed and the company's license is reinstated. This ensures that all lending activities continue to adhere to legal and ethical guidelines, maintaining a standard of accountability in the industry. It's crucial for the integrity of the lending process that there is always a qualified individual overseeing these activities, which is why the licensee's status changes to inactive.