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I'm having the exact same problem! Can someone please help I want to keep playing!

Report back to Edryno and wrap up the quest. She should have made you a House Cousin by now, and if you push, she’ll tell you that you need a sponsor to move up the House ladder. She has no more quests for you anyway, so let’s go talk to our pending sponsor.

That's what it says in the walkthrough ...

I've done all the Hlaalu quests for the lady in Balmora. I've done all the Hlaalu quests for the lady in the Hlaalu waistworks. So why does Crassius say that he has no business for me yet? I'm level 8 so do I need to be higher?