The DFPI's Subterranean "True Lender" Doctrine

Some readers may recall that two years ago the Office of the Comptroller of the Currency adopted a "true lender" rule.  That rule  The rule specified that a bank makes a loan and is the true lender if, as of the date of origination, it (1) is named...

Finance Lenders: It's Time To Pay Your Annual Assessment

The California Financing Law requires each licensed lender, broker, and program administrator licensee to pay its pro rata share of all costs and expenses of the administration of the law, as estimated by the Commissioner, for the ensuing year and...

DFPI Charges Digital Asset Company With More Than 50,000 CFL Violations

Yesterday's post concerned a bill pending in the California legislature that would impose a licensing requirement on persons engaging in "digital financial asset business activity", or holding itself out as being able to engage in "digital financial...

California Statute Permits Unlicensed "Small Dollar" Lending By Some Nonprofits

On the eve of the Great Depression, the United States Bureau of Printing and Engraving made a big change by introducing small bills.  The Bureau reduced the size of bills by about 30% to save money on ink and paper - the downsizing allowed 12 bills...

For Finance Lenders, The Times They Are A-Changing

The California Financing Law (fka Finance Lenders Law) requires that persons engaged in the business of making loans be licensed by the Department of Financial Protection & Innovation (fka Department of Business Oversight fka Department of...

DBO Proposes To Transition All CFL Licensees To NMLS

The State Regulatory Registry LLC, an affiliate of the Conference of State Banking Supervisors, developed and operates the Nationwide Multistate Licensing System (NMLS).  In 2008, Congress enacted the Secure and Fair Enforcement for Mortgage...

DBO Seeks Comments On Commercial Loan Disclosure Rules

This September, Governor Jerry Brown signed SB 1235 (Stats. 2018, Ch. 1011) into law.  In a nutshell, SB 1235 adds a new division to the Financial Code imposing specific loan disclosure requirements on providers of commercial financings.  These...

California Will Soon Require Novel Disclosure Requirements Providers Of Commercial Financings

In February, I noted the introduction of a bill that would require any person engaged in the business of commercial financing to provide specified disclosures to prospective borrowers.  On September 30, Governor Brown signed the bill, SB 1235, into...

Watch Out, Small Commercial Lending Might Soon Become A lot More Complicated!

Way back in February, I wrote about a bill, SB 1235, that would impose specific disclosure requirements on persons engaged in the business of commercial financing.  In the ensuing months, the bill was amended eight times, including three amendments...

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