AB 2981: Finance lenders: exemption from licensure.

Session Year: 2023-2024
House: Assembly

Current Status:

Failed

(2024-05-16: In committee: Held under submission.)

Introduced

First Committee Review

First Chamber

Second Committee Review

Second Chamber

Enacted

Version:

Existing law, the California Financing Law, prohibits a person from engaging in the business of a finance lender or broker without obtaining a license from the Commissioner of Financial Protection and Innovation.

This bill would, notwithstanding those provisions, authorize a person to engage in the business of a finance lender or broker without obtaining a license if the person, in the preceding year, has not made a consumer loan and has made fewer than 4 commercial loans, or if the principal amount of every loan made by the person in the preceding calendar year has each exceeded the highest conforming loan limit value in any county for mortgages that finance single-family, one-unit properties, as calculated under the permanent formula established under the federal Housing and Economic Recovery Act of 2008.

This bill would deem a lender to be a licensed finance lender or broker without obtaining a license if the lender does not make or broker residential mortgage loans or consumer loans, makes 5 or fewer commercial loans annually, and the principal amount of all loans made by the lender in the preceding and current calendar year have each exceeded $350,000.

Discussed in Hearing

Assembly Standing Committee on Banking and Finance

6MIN

Apr 15, 2024

Assembly Standing Committee on Banking and Finance

View Older Hearings

Bill Author

Phillip Chen

AB 2981: Finance lenders: exemption from licensure.

Current Status:

Assembly Standing Committee on Banking and Finance

News Coverage: