BILL NUMBER: AB 986	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Eng

                        FEBRUARY 18, 2011

   An act to amend Section 22361 of the Financial Code, relating to
finance lenders.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 986, as introduced, Eng. Finance lenders.
   Existing law requires the Commissioner of Corporations to submit a
report, on or before January 1, 2014, to the Senate Committee on
Banking, Finance and Insurance and the Assembly Committee on Banking
and Finance summarizing the utilization of the Pilot Program for
Affordable Credit-Building Opportunities and including
recommendations relative to the continuation of the program.
   This bill would specify that the report is required to be
submitted to the Senate Committee on Banking and Financial
Institutions and the Assembly Committee on Banking and Finance.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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

  SECTION 1.  Section 22361 of the Financial Code is amended to read:

   22361.  (a) On or before January 1, 2014, the commissioner shall
submit a report to the Senate Committee on Banking  , Finance
and Insurance   and Financial Institutions  , 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.