Requirements After a Finance Lenders License Has Been Issued

Posted by:

Requirements After a Finance Lenders License Has Been Issued

DFPI (formerly DBO) publishes on its website the below compliance requirements.    However, compliance for California lenders licensed as CFLs involves a lot more.   All contracts and disclosures must comply with CFL, California, and applicable federal laws.   Consumer CFL lenders are also subject to many federal lending and financial laws.  Commercial lenders are also subject to some (not as much as consumer lenders) additional federal and financial laws and to the new Commercial ...

Continue Reading →
0

Requirements After a CDDTL License Has Been Issued

Posted by:

Requirements After a CDDTL License Has Been Issued

DBO publishes on its website the below compliance requirements.    However, compliance for California payday lenders licensed as CDDTLs, involves a lot more.   All contracts and disclosures must comply with CDDTL, California, and applicable federal laws.   CDDTL payday lenders are consumer lenders since the loans are made for personal, family, and household purposes.  Consequently, many federal laws must be complied with.  Accordingly, compliance after a CDDTL license is issued involves a lot ...

Continue Reading →
0

2016 Annual Reports for DBO Lending Programs Published

Posted by:

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 ...

Continue Reading →
0

DBO’s Per Diem Interest Compliance Guidance for Mortgage Lenders

Posted by:

Continue Reading →
0

New Licensing Requirements for Student Loan Servicers in California

Posted by:

STUDENT LOAN SERVICERS
AB 2251 (Stone)
Student loan servicers: licensing and regulation: Student Loan Servicing Act.
AB 2251, Chapter 824, Statutes 2016
(Financial Code)
This bill adds a new Division, the “California Student Loan Servicing Act (Act),” to the
Financial Code. The Act requires servicers to adhere to specified borrower protections
when servicing student loans. The bill also expands the authority of the Commissioner of
Business Oversight to include the licensure, regulation and oversight of student loan
servicers. This bill ...

Continue Reading →
0

CALIFORNIA FINANCE LENDERS LAW : ONE COMMERCIAL LOAN PER YEAR EXEMPTION

Posted by:

SB 777, Lara. The California Finance Lenders Law: application.
Existing law, the California Finance Lenders Law, provides for the licensure and regulation of finance lenders and brokers. Existing law exempts from its provisions, among others, persons making 5 or fewer commercial loans in a 12-month period if the loans are incidental to the business of the person relying upon the exemption.
This bill would also exempt, until January 1, 2022, a person who makes one commercial loan in a 12-month period ...
Continue Reading →
0

California finance lenders alert: Department of Defense Issues New Guidance on Military Lending Act

Posted by:

California consumer finance lenders who lend to service members must also comply with the Military Lending Act.    California Finance Lenders Law incorporates the Military Lending Act as follows:

Financial Code 22345. “(a) Any person who violates any provision of Section 670 of the John Warner National Defense Authorization Act for Fiscal Year

2007 (Public Law 109-364) or any provision of Section 232 of Title 32

of the Code of Federal Regulations, as published on August 31, 2007,

in Volume 72 of the Federal Register, ...

Continue Reading →
0

California DBO is conducting an inquiry into 14 firms’ compliance with lending laws.

Posted by:

The California Department of Business Oversight (DBO), the agency that grants the Finance Lenders License, recently was named by American Banker as one of eight state and federal regulators to watch in the online lending arena. From the American Banker:

California officials are conducting an inquiry into 14 firms’ compliance with laws and regulations dealing with referral fees, bank partnerships and fair lending. The Bay Area is to home to numerous large U.S. online lenders, including Lending Club, Prosper Marketplace, Social ...

Continue Reading →
0

California finance lenders license compliance

Posted by:

See my article on DeBanked titled, “California Finance Lenders Law Licensing Compliance for Merchant Cash Advance Financiers.

Similarly, secured and unsecured commercial and consumer lenders, who lend to California borrowers, should also comply with the California finance lenders licensing laws and regulations.  Consumer lenders should also comply with state and federal consumer lending and financial laws.

The Department of Business Oversight routinely conducts inspections of licensees and may revoke or suspend licenses for none-compliance. In case an Accusation ...

Continue Reading →
0