California Lending License Questions Answered – Even the Tricky Ones
Q: Can a loan broker operate under the authority of a lender that’s licensed in California?
A: “The CFLL requires both lenders and brokers to hold their own licenses.”
That’s one of many responses provided by Department of Business Oversight Commissioner Jan Lynn Owen to a series of questions and hypothetical scenarios posed by the Equipment Leasing and Finance Association. The nine pages of answers, available on Leasing News basically explains that any funny business or creativity to try and circumvent the law will not be tolerated.
Tom McCurnin, an attorney at Barton, Klugman & Oetting, wrote in Leasing News that “disguising the commissions as something else, like a markup or consultation fees, won’t pass muster before the DOB. The parties engaging in this may be subject to a cease and desist order and hefty fines.”
“While many may claim the recent letter is a revelation, I believe it is simply a restatement of what we’ve known all along—get a license or face the consequences,” he concludes.Last modified: May 2, 2016