2016 Annual Reports for DBO Lending Programs Published
Annual reports for three major lending programs overseen by the DBO have been published and posted to the department’s website.
The 2016 Consolidated Annual Report and Industry Survey for Payday Lenders (California Deferred Deposit Transaction Law) showed that payday lending slowed in California in 2016 although it increased dramatically among senior citizens, who for the first time took out more of the loans than any other age group. After peaking at $4.17 billion in 2015, the total amount of payday loans dropped nearly 25 percent to $3.14 billion in 2016, the lowest level since 2010, according to a survey of DBO-licensed payday lenders included in the report.
The 2016 Annual Report for the California Finance Lenders Law (CFLL) showed that installment consumer lending by non-banks in California increased more than 21 percent, to $41.3 billion in 2016, while the number of those loans grew nearly 6 percent.
The CFLL report also showed a significant increase in the number and total principal of unsecured consumer loans under $2,500, where interest rates are capped. The number of such loans increased 11.4 percent, to more than 501,000, while the aggregate principal increased 9.5 percent, to almost $342 million.
The 2016 Annual Report for the California Residential Mortgage Lending Act (CRMLA) showed that the number of loans originated by licensees increased 12 percent in 2016, while the aggregate principal amount of loans originated increased 15.6 percent to $207.3 billion, a 437 percent increase from the 2008 low of $38.6 billion.
The CRMLA report also showed the number of loans brokered in 2016 increased slightly, up 4.59 percent over 2015. The aggregate average amount of loans serviced monthly by California licensees increased 11.5 percent in 2016, to $854.1 billion.