BILL NUMBER: SB 1146	CHAPTERED
	BILL TEXT

	CHAPTER  640
	FILED WITH SECRETARY OF STATE  SEPTEMBER 30, 2010
	APPROVED BY GOVERNOR  SEPTEMBER 30, 2010
	PASSED THE SENATE  AUGUST 26, 2010
	PASSED THE ASSEMBLY  AUGUST 25, 2010
	AMENDED IN ASSEMBLY  AUGUST 20, 2010
	AMENDED IN ASSEMBLY  AUGUST 16, 2010
	AMENDED IN ASSEMBLY  AUGUST 2, 2010
	AMENDED IN ASSEMBLY  JUNE 23, 2010
	AMENDED IN SENATE  MAY 27, 2010
	AMENDED IN SENATE  APRIL 28, 2010
	AMENDED IN SENATE  APRIL 8, 2010
	AMENDED IN SENATE  MARCH 22, 2010

INTRODUCED BY   Senator Florez
   (Principal coauthor: Assembly Member Fuentes)
   (Coauthor: Senator Correa)
   (Coauthor: Assembly Member Torres)

                        FEBRUARY 18, 2010

   An act to amend Sections 22165 and 22166 of, and to add and repeal
Article 3.5 (commencing with Section 22348) of Chapter 2 of Division
9 of, the Financial Code, relating to finance lenders.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1146, Florez. Finance lenders.
   Existing law, the California Finance Lenders Law, provides for the
licensure and regulation of finance lenders and brokers by the
Commissioner of Corporations and makes a willful violation of its
provisions a crime. Existing law regulates the charges a licensee may
impose or receive on loans it makes and authorizes a licensee to
contract for and receive specified alternative charges and
administrative and delinquency fees.
   This bill, until January 1, 2015, would establish the Pilot
Program for Affordable Credit-Building Opportunities for the purpose
of increasing the availability of credit-building opportunities to
underbanked individuals seeking low-dollar-value loans. The bill
would require licensees to file an application with, and pay a fee
to, the commissioner to participate in the program. The bill would
authorize a licensee approved by the commissioner to participate in
the program to impose specified alternative interest rates and
charges, including an administrative fee and delinquency fees, on
loans of at least $250 and less than $2,500, subject to certain
requirements.
   This bill would also authorize licensees in the program to use the
services of finders, defined as entities who, at the finder's
physical location for business, bring licensees and prospective
borrowers together for the purpose of negotiating loan contracts at
the finder's location, subject to a written agreement meeting
specified requirements. The bill would establish the services a
finder is authorized and required to perform, and would require a
finder to comply with the laws applicable to the licensee relative to
information security. The bill would require a licensee to notify
the commissioner within 15 days of entering into a contract with a
finder, would require a licensee to pay an annual finder registration
fee to the commissioner, and would require a licensee to submit an
annual report to the commissioner on the licensee's relationship and
business arrangements with a finder, as specified. The bill would
authorize the commissioner to examine the operations of a licensee
and a finder to ensure that the activities of the licensee and the
finder are in compliance with these provisions. The bill would make a
licensee that uses a finder responsible for a violation of these
provisions by a finder or a finder's employee, and would authorize
the commissioner to impose administrative penalties against a finder
for a violation of these provisions. The bill would authorize the
commissioner, upon a violation of these provisions, to disqualify a
finder from performing services, bar a finder from performing
services at one or more specific locations of the finder, terminate a
written agreement between a licensee and a finder, and, under
specified circumstances, prohibit the use of the finder by all
licensees.
   This bill would require the commissioner to examine the
performance of each licensee in the program at least once every 24
months, and would require the costs of examination to be paid by the
licensee to the commissioner, as specified. The bill would also
require the commissioner to conduct a random sample survey of
borrowers under the program. The bill would require the commissioner
to report to specified legislative committees, by January 1, 2014,
summarizing utilization of the Pilot Program for Affordable
Credit-Building Opportunities, as specified.
    Existing law prohibits a licensed finance lender or broker from
using advertising copy after its use has been disapproved by the
commissioner and the licensee is notified in writing of the
disapproval. Existing law authorizes the commissioner to require a
licensee to maintain a file of all advertising copy for a period of
90 days from the date of its use.
   This bill would authorize the commissioner to direct any licensee
to submit advertising copy for review by the commissioner prior to
its use. The bill would authorize the commissioner to require a
licensee to maintain a file of all advertising copy for a period of 2
years from the date of its use.
    Because a willful violation of these provisions would be a crime,
this bill would impose a state-mandated local program.
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 22165 of the Financial Code is amended to read:

   22165.  No advertising copy shall be used after its use has been
disapproved by the commissioner and the licensee is notified in
writing of the disapproval. The commissioner may by order direct any
licensee to submit advertising copy to the commissioner for review
prior to use.
  SEC. 2.  Section 22166 of the Financial Code is amended to read:
   22166.  The commissioner may require licensees to maintain a file
of all advertising copy for a period of two years from the date of
its use. The file shall be available to the commissioner upon
request.
  SEC. 3.  Article 3.5 (commencing with Section 22348) is added to
Chapter 2 of Division 9 of the Financial Code, to read:

      Article 3.5.  Pilot Program for Affordable Credit-Building
Opportunities


   22348.  (a) The Pilot Program for Affordable Credit-Building
Opportunities is hereby established and is intended to increase the
availability of affordable credit-building opportunities to
underbanked individuals seeking low-dollar-value loans and to help
those individuals move into the financial mainstream.
   (b) All references in this article to the program shall mean and
refer to the Pilot Program for Affordable Credit-Building
Opportunities.
   22349.  Any licensee wishing to participate in the program, who is
in good standing with the commissioner and has no outstanding
enforcement actions or deficiencies at the time of its application,
shall file an application with the commissioner, in a manner
prescribed by the commissioner, and shall pay a fee to the
commissioner, in an amount calculated by the commissioner to cover
its costs to administer this article.
   22349.1.  The commissioner shall not approve any licensee to
participate in the program, unless that licensee has been accepted as
a data furnisher by at least one of the national credit reporting
agencies for the purpose of reporting borrower payment performance.
   22349.2.  Every licensee approved by the commissioner to
participate in the program shall file with the commissioner on or
before the 15th day of March an annual report consistent with Section
22159, separate from any other annual report the licensee may be
required to file.
   22350.  Nothing in this article shall exempt any licensee from any
of the provisions of this division or Section 1632 of the Civil
Code.
   22351.  No licensee may offer or make a loan, nor impose any
charges or fees pursuant to Section 22352, nor use a finder pursuant
to Section 22353, without prior approval from the commissioner to
participate in the program.
   22352.  (a) Any loan made pursuant to this section shall comply
with the following requirements:
   (1) The loan shall be unsecured.
   (2) Interest on the loan accrues on a simple-interest basis,
through the application of a daily periodic rate to the actual unpaid
principal balance each day.
   (3) The licensee discloses the following to the consumer in
writing at the time of application:
   (A) The annual percentage rate, the periodic payment amount, and
the total finance charge, calculated as required by Federal Reserve
Board Regulation Z, as to a loan of an amount and term substantially
similar to the loan applied for by the consumer.
   (B) That the consumer shall have the right to rescind the loan by
notifying the licensee of the consumer's intent to rescind the loan
and returning the principal advanced by the end of the business day
following the date of the consummation of the loan.
   (4) The loan has a minimum principal amount upon origination of
two hundred fifty dollars ($250) and a term of not less than the
following:
   (A) Ninety days for loans whose principal balance upon origination
is less than five hundred dollars ($500).
   (B) One hundred twenty days for loans whose principal balance upon
origination is at least five hundred dollars ($500), but is less
than one thousand five hundred dollars ($1,500).
   (C) One hundred eighty days for loans whose principal balance upon
origination is at least one thousand five hundred dollars ($1,500).
   (5) The licensee complies with the requirements of any applicable
state or federal law.
   (b) As an alternative to the charges authorized by Section 22303
or 22304, a licensee approved by the commissioner to participate in
the program may contract for and receive charges for a loan made
pursuant to this section at a rate not exceeding the sum of the
following:
   (1) Two and one-half percent per month on that part of the unpaid
principal balance of the loan up to and including, but not in excess
of, one thousand dollars ($1,000).
   (2) Two and one-sixth percent per month on that portion of the
unpaid principal balance of the loan in excess of one thousand
dollars ($1,000).
   (c) Notwithstanding subdivision (b), a licensee approved by the
commissioner to participate in the program shall reduce the rate on
each subsequent loan to the same borrower by a minimum of one-twelfth
of 1 percent per month, if all of the following conditions are met:
   (1) The subsequent loan is originated no more than 180 days after
the prior loan is fully repaid.
   (2) The borrower was never more than 15 days delinquent on the
prior loan.
   (3) The prior loan was outstanding for at least one-half of its
original term prior to its repayment.
   (d) As to any loan made under this section, a licensee approved by
the commissioner to participate in the program may contract for and
receive an administrative fee, which shall be fully earned
immediately upon making the loan, in an amount not in excess of
either 5 percent of the principal amount, exclusive of the
administrative fee, or sixty-five dollars ($65), whichever is less. A
licensee shall not charge the same borrower more than one
origination fee in any six-month period. An administrative fee shall
not be contracted for or received in connection with the refinancing
of a loan unless at least one year has elapsed since the receipt of a
previous administrative fee paid by the borrower. Only one
administrative fee shall be contracted for or received until the loan
has been repaid in full. Section 22305 shall not apply to any loan
made under this section.
   (e) Notwithstanding subdivision (a) of Section 22320.5, a licensee
approved by the commissioner to participate in the program may
contract for and receive a delinquency fee that is one of the
following amounts:
   (1) For a period in default of not less than seven days, an amount
not in excess of twelve dollars ($12).
   (2) For a period in default of not less than 14 days, an amount
not in excess of eighteen dollars ($18).
   (f) If a licensee opts to impose a delinquency fee, it shall use
the delinquency fee schedule described in subdivision (e), subject to
all of the following:
   (1) No more than one delinquency fee may be imposed per delinquent
payment.
   (2) No more than two delinquency fees may be imposed during any
period of 30 consecutive days.
   (3) No delinquency fee may be imposed on a borrower who is 180
days or more past due if that fee would result in the sum of the
borrower's remaining unpaid principal balance, accrued interest, and
delinquency fees exceeding 180 percent of the original principal
amount of the borrower's loan.
   (4) The licensee or any of its wholly owned subsidiaries shall
attempt to collect a delinquent payment for a period of at least 30
days following the start of the delinquency before selling or
assigning that unpaid debt to an independent party for collection.
   (g) The following shall apply to a loan made by a licensee
pursuant to this section:
   (1) Prior to disbursement of loan proceeds, the licensee shall
either (A) offer a credit education program or seminar to the
borrower that has been previously reviewed and approved by the
commissioner for use in complying with this section; or (B) invite
the borrower to a credit education program or seminar offered by an
independent third party that has been previously reviewed and
approved by the commissioner for use in complying with this section.
The borrower shall not be required to participate in either of these
education programs or seminars.
   (2) The licensee shall report each borrower's payment performance
to at least one of the national credit reporting agencies in the
United States.
   (3) (A) The licensee shall underwrite each loan to determine a
borrower's ability and willingness to repay the loan pursuant to the
loan terms, and shall not make a loan if it determines, through its
underwriting, that the borrower's total monthly debt service
payments, at the time of origination, including the loan for which
the borrower is being considered, and across all outstanding forms of
credit that can be independently verified by the licensee, exceed 50
percent of the borrower's gross monthly income.
   (B) (i) The licensee shall seek information and documentation
pertaining to all of a borrower's outstanding debt obligations during
the loan application and underwriting process, including loans that
are self reported by the borrower but not available through
independent verification. The licensee shall verify that information
using a credit report from at least one of the three major credit
bureaus or through other available electronic debt verification
services that provide reliable evidence of a borrower's outstanding
debt obligations.
   (ii) Notwithstanding the verification requirement in subparagraph
(A), the licensee shall request from the borrower and include all
information obtained from the borrower regarding outstanding deferred
deposit transactions in the calculation of the borrower's
outstanding debt obligations.
   (iii) The licensee shall not be required to consider, for purposes
of debt-to-income ratio evaluation, loans from friends or family.
   (C) The licensee shall also verify the borrower's income that the
licensee relies on to determine the borrower's debt-to-income ratio
using information from either of the following:
   (i) Electronic means or services that provide reliable evidence of
the borrower's actual income.
   (ii) Internal Revenue Service Form W-2, tax returns, payroll
receipts, bank statements, or other third-party documents that
provide reasonably reliable evidence of the borrower's actual income.

   (h) (1) Notwithstanding Sections 22311 to 22315, inclusive, no
person, in connection with, or incidental to, the making of any loan
made pursuant to this article, may offer, sell, or require the
borrower to contract for "credit insurance" as defined in paragraph
(1) of subdivision (a) of Section 22314 or insurance on tangible
personal or real property of the type specified in Section 22313.
   (2) Notwithstanding Sections 22311 to 22315, inclusive, no
licensee, finder, or any other person that participates in the
origination of a loan under this article shall refer a borrower to
any other person for the purchase of "credit insurance" as defined in
paragraph (1) of subdivision (a) of Section 22314 or insurance on
tangible personal or real property of the type specified in Section
22313.
   (i) (1) No licensee shall require, as a condition of providing the
loan, that the borrower waive any right, penalty, remedy, forum, or
procedure provided for in any law applicable to the loan, including
the right to file and pursue a civil action or file a complaint with
or otherwise communicate with the commissioner or any court or other
public entity, or that the borrower agree to resolve disputes in a
jurisdiction outside of California or to the application of laws
other than those of California, as provided by law. Any such waiver
by a borrower must be knowing, voluntary, and in writing, and
expressly not made a condition of doing business with the licensee.
Any such waiver that is required as a condition of doing business
with the licensee shall be presumed involuntary, unconscionable,
against public policy, and unenforceable. The licensee has the burden
of proving that a waiver of any rights, penalties, forums, or
procedures was knowing, voluntary, and not made a condition of the
contract with the borrower.
   (2) No licensee shall refuse to do business with or discriminate
against a borrower or applicant on the basis that the borrower or
applicant refuses to waive any right, penalty, remedy, forum, or
procedure, including the right to file and pursue a civil action or
complaint with, or otherwise notify, the commissioner or any court or
other public entity. The exercise of a person's right to refuse to
waive any right, penalty, remedy, forum, or procedure, including a
rejection of a contract requiring a waiver, shall not affect any
otherwise legal terms of a contract or an agreement.
   (3) This subdivision shall not apply to any agreement to waive any
right, penalty, remedy, forum, or procedure, including any agreement
to arbitrate a claim or dispute, after a claim or dispute has
arisen. Nothing in this subdivision shall affect the enforceability
or validity of any other provision of the contract.
   (j) This section shall not apply to any loan of a bona fide
principal amount of two thousand five hundred dollars ($2,500) or
more as determined in accordance with Section 22251. For purposes of
this subdivision, "bona fide principal amount" shall be determined in
accordance with Section 22251.
   22353.  (a) A licensee who is approved by the commissioner to
participate in the program may use the services of one or more
finders as provided in this article.
   (b) For purposes of this article, a "finder" means an entity that,
at the finder's physical location for business, brings a licensee
and a prospective borrower together for the purpose of negotiating a
loan contract.
   22354.  (a) A finder may perform one or more of the following
services for a licensee at the finder's physical location for
business:
   (1) Distributing, circulating, using, or publishing preprinted
brochures, flyers, factsheets, or other written materials relating to
loans that the licensee may make or negotiate and that have been
reviewed and approved in writing by the licensee prior to their being
distributed, circulated, or published.
   (2) Providing written factual information about loan terms,
conditions, or qualification requirements to a prospective borrower
that has been either prepared by the licensee or reviewed and
approved in writing by the licensee. A finder may discuss that
information with a prospective borrower in general terms, but may not
provide counseling or advice to a prospective borrower.
   (3) Notifying a prospective borrower of the information needed in
order to complete a loan application without providing counseling or
advice to a prospective borrower.
   (4) Entering information provided by the prospective borrower on a
preprinted or electronic application form or onto a preformatted
computer database without providing counseling or advice to a
prospective borrower.
   (5) Assembling credit applications and other materials obtained in
the course of a credit application transaction for submission to the
licensee.
   (6) Contacting the licensee to determine the status of a loan
application.
   (7) Communicating a response that is returned by the licensee's
automated underwriting system to a borrower or a prospective
borrower.
   (8) Obtaining a borrower's signature on documents prepared by the
licensee and delivering final copies of the documents to the
borrower.
   (b) A finder shall not engage in any of the following activities:
   (1) Providing counseling or advice to a borrower or prospective
borrower.
   (2) Providing loan-related marketing material that has not
previously been approved by the licensee to a borrower or a
prospective borrower.
   (3) Interpreting or explaining the relevance, significance, or
effect of any of the marketing materials or loan documents the finder
provides to a borrower or prospective borrower.
   (c) Any person who performs one or more of the following
activities is a broker within the meaning of Section 22004 rather
than a finder within the meaning of this section:
   (1) Negotiating the price, length, or any other loan term between
a licensee and a prospective borrower.
   (2) Advising either a prospective borrower or a licensee as to any
loan term.
   (3) Offering information pertaining to a single prospective
borrower to more than one licensee, except that, if a licensee has
declined to offer a loan to a prospective borrower and has so
notified that prospective borrower in writing, the person may then
offer information pertaining to a single prospective borrower to
another licensee with which it has a finder's agreement.
   (4) Personally contacting or providing services to a borrower or
prospective borrower at any place other than the finder's physical
location for business.
   (d) A finder shall comply with all laws applicable to the licensee
that impose requirements upon the licensee for safeguards for
information security.
   22355.  (a) At the time the finder receives or processes an
application for a pilot program loan, the finder shall provide the
following statement to the applicant, on behalf of the licensee, in
no smaller than 10-point type, and shall ask the applicant to
acknowledge receipt of the statement in writing:


   "Your loan application has been referred to us by [Name of
Finder]. We may pay a fee to [Name of Finder] for the successful
referral of your loan application. IF YOU ARE APPROVED FOR THE LOAN,
[NAME OF LICENSEE] WILL BECOME YOUR LENDER, AND YOU WILL BE BUILDING
A RELATIONSHIP WITH [NAME OF LICENSEE]. If you wish to report a
complaint about [Name of Finder] or [Name of Licensee] regarding this
loan transaction, you may contact the California Department of
Corporations at 1-866-ASK-CORP (1-866-275-2677), or file your
complaint online at www.corp.ca.gov."


   (b) If the loan is consummated, the licensee shall mail or give to
the borrower a copy of the disclosure notice within two weeks of the
date of the loan consummation.
   22356.  (a) A finder may be compensated by the licensee pursuant
to the written agreement between the licensee and the finder, as
described in Section 22357.
   (b) The compensation of a finder by a licensee shall be subject to
all of the following requirements:
   (1) No fee shall be paid to a finder in connection with a loan
application until and unless that loan is consummated.
   (2) No fee shall be paid to a finder based upon the principal
amount of the loan.
   (3) No fee paid to a finder shall exceed the following amounts:
   (A) Forty-five dollars ($45) per loan for the first 40 loans
originated each month at the finder's location.
   (B) Forty dollars ($40) per loan for any subsequent loans
originated during that month at the finder's location.
   (4) The finder's location for services under this article and
other information required by Section 22357 has been reported to the
commissioner and the finder has not been barred from providing
services at that location by the commissioner.
   (c) No licensee shall, directly or indirectly, pass on to a
borrower any fee, or any portion of any fee, that the licensee pays
to a finder in connection with that borrower's loan or loan
application.
   22357.  A licensee that utilizes the service of a finder shall do
all of the following:
   (a) Notify the commissioner within 15 days of entering into a
contract with a finder, on a form acceptable to the commissioner,
regarding all of the following:
   (1) The name and business address of the finder and all locations
at which the finder will perform services under this article.
   (2) The name and contact information for an employee of the finder
who is knowledgeable about, and has the authority to execute, the
contract governing the business relationship between the finder and
the licensee.
   (3) The name and contract information for one or more employees of
the finder who is or are responsible for the activities of the
finder at each of its locations.
   (4) A list of the activities the finder shall perform on behalf of
the licensee.
   (5) Any other information requested by the commissioner.
   (b) Pay an annual finder registration fee to the commissioner in
an amount to be established by the commissioner by regulation for
each finder utilized by the licensee.
   (c) Submit an annual report to the commissioner including any
information pertaining to each finder and the licensee's relationship
and business arrangements with each finder as the commissioner may
by regulation require.
   22358.  All arrangements between a licensee and a finder shall be
set forth in a written agreement between the parties. The agreement
shall contain a provision establishing that the finder agrees to
comply with all regulations that are established by the commissioner
pursuant to this article regarding the activities of finders and that
the commissioner shall have access to all of the finder's books and
records that pertain to the finder's operations under the agreement
with the licensee.
   22359.  (a) The commissioner may examine the operations of each
licensee and each finder to ensure that the activities of the
licensee and the finder are in compliance with this article. The
costs of the commissioner's examination of each finder shall be
attributed to the commissioner's examination of the licensee. Any
violation of this article by a finder or a finder's employee shall be
attributed to the finance lender with whom it has entered into an
agreement for purposes of determining the licensee's compliance with
this division.
   (b) Upon a determination that a finder has acted in violation of
this article, or any implementing regulation, the commissioner shall
have the authority to disqualify a finder from performing services
under this article, bar a finder from performing services at one or
more specific locations of that finder, terminate a written agreement
between a finder and a licensee, and, if the commissioner deems that
action in the public interest, prohibit the use of that finder by
all licensees accepted to participate in the pilot program.
   (c) In addition to any other penalty allowed by law, the
commissioner may impose an administrative penalty up to two thousand
five hundred dollars ($2,500) for violations committed by a finder.
   22360.  Notwithstanding any other provision of law, the
commissioner shall examine each licensee that is accepted into the
program at least once every 24 months. The cost of each examination
of a licensee shall be paid to the commissioner by the licensee
examined, and the commissioner may maintain an action for the
recovery of the cost in any court of competent jurisdiction. In
determining the cost of the examination, the commissioner may use the
estimated average hourly cost for all persons performing
examinations of licensees or other persons subject to this division
for the fiscal year.
   22361.  (a) On or before January 1, 2014, the commissioner shall
submit a report to the Senate Committee on Banking, Finance and
Insurance, the Assembly Committee on Banking and Finance, and the
Senate and Assembly Committees on Judiciary, in compliance with
Section 9795 of the Government Code, summarizing utilization of the
Pilot Program for Affordable Credit-Building Opportunities and
including recommendations regarding whether the program should be
continued after January 1, 2015.
   (b) The information disclosed to the commissioner for the
commissioner's use in preparing the report described in this section
is exempted from any requirement of public disclosure by paragraph
(2) of subdivision (d) of Section 6254 of the Government Code.
   (c) If there is more than one licensee approved to participate in
the program under this article, the report required pursuant to
subdivision (a) shall state information in aggregate so as not to
identify data by specific licensee.
   (d)  The report required pursuant to this section shall include,
but not be limited to, the following:
   (1) The number of finance lender licensees who applied to
participate in the program.
   (2) The number of finance lender licensees accepted to participate
in the program.
   (3) The number of program loan applications received by lenders
participating in the program, the number of loans made pursuant to
the program, the total amount loaned, and the distribution of
interest rates and principal amounts upon origination among those
loans.
   (4) The number of borrowers who obtained more than one program
loan.
   (5) Of the number of borrowers who obtained more than one program
loan, the percentage of those borrowers whose credit scores increased
between successive loans, based on information from at least one
major credit bureau, and the average size of the increase.
   (6) The income distribution of borrowers, including the number of
borrowers who obtained at least one program loan and who resided in a
low-to-moderate-income census tract at the time of their loan
application.
   (7) The number of borrowers who obtained loans for the following
purposes, based on borrower responses at the time of their loan
applications indicating the primary purpose for which the loan was
obtained:
   (A) Medical.
   (B) Other emergency.
   (C) Vehicle repair.
   (D) Vehicle purchase.
   (E) To pay bills.
   (F) To consolidate debt.
   (G) To build or repair credit history.
   (H) To finance a purchase of goods or services other than a
vehicle.
   (I) Other.
   (8) The number of borrowers who have a bank account, the number of
borrowers who have a bank account and use check-cashing services,
and the number of borrowers who do not have a bank account.
   (9) The number and type of finders used by all licensees, the
amount of finder's fees paid by the type of finder, and the relative
performance of loans consummated by finders compared to the
performance of loans consummated without a finder.
   (10) The number and percentage of borrowers who obtained one or
more program loans on which late fees were assessed, the total amount
of late fees assessed, and the average late fee assessed by dollar
amount and as a percentage of the principal amount loaned.
   (11) The quality of underwriting and performance of loans under
this article consistent with the reporting standards applicable to
other loans and financial products, including, but not limited to,
credit cards and deferred deposit transactions.
   (12) The number of times the commissioner found that a finder or
licensee had violated this article.
   (13) The number of times that the commissioner disqualified a
finder from performing services, barred a finder from performing
services at one or more specific locations of the finder, terminated
a written agreement between a finder and a licensee, or imposed an
administrative
penalty.
   (14) Recommendations for improving the program.
   (15) Recommendations regarding whether the program should be
continued after January 1, 2015.
   (e) The commissioner shall conduct a random sample survey of
borrowers who have participated in the program to obtain information
regarding the borrowers' experience and licensees' compliance with
this article. The results of this survey shall be included in the
report required by this section.
   22362.  This article shall remain in effect only until January 1,
2015, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2015, deletes or extends
that date.
  SEC. 4.  Notwithstanding the repeal of the Pilot Program for
Affordable Credit-Building Opportunities under this act, a loan
agreement entered into pursuant to the pilot program shall continue
to govern the rights, remedies, and obligations of the lender and
borrower under that agreement.
  SEC. 5.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.