BILL ANALYSIS Ó
AB 1446
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CONCURRENCE IN SENATE AMENDMENTS
AB
1446 (Dababneh)
As Amended June 23, 2015
Majority vote
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|ASSEMBLY: | 78-0 |(May 14, 2015) |SENATE: |40-0 |(August 24, |
| | | | | |2015) |
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Original Committee Reference: B. & F.
SUMMARY: Clarifies the authority of the commissioner of the
Department of Business Oversight (DBO) to issue desist and
refrain orders against licensees under the California Finance
Lenders Law (CFLL). This bill specifies that the commissioner
may order a person engaged as a broker, finance lender, or
mortgage loan originator to desist and refrain from violations
of a provision of an order or any regulation adopted under the
CFLL.
The Senate amendments make minor and technical changes.
EXISTING LAW:
1)"Finance lenders" making loans in California are required to
obtain a license from DBO and comply with the licensing and
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regulatory requirements of the CFLL (Financial Code Sections
22000-22780) and the regulations thereunder. A "finance
lender" is broadly defined in California Finance Code Section
22009 as "any person who is engaged in the business of making
consumer loans or making commercial loans."
2)Authorizes a de minimis exemption under the CFLL for persons
who make no more than one commercial loan in a 12-month period
(Financial Code Section 22050).
3)Prohibits a person subject to the CFLL from doing either of
the following:
a) Making a materially false or misleading statement or
representation to a borrower about the terms or conditions
of that borrower's loan, when making or brokering the loan
(Financial Code Section 22161); or,
b) Advertising, printing, displaying, publishing,
distributing, broadcasting, or causing or permitting to be
advertised, printed, displayed, published, distributed, or
broadcast in any manner, any statement or representation
that is false, misleading, or deceptive, or that omits
material information, as specified (Financial Code Section
22161).
4)Provides that any person who willfully violates any provisions
of the CFLL, or who willfully violates any rule or order
adopted pursuant to the CFLL, is liable for a civil penalty
not to exceed $2,500 for each violation, which must be
assessed and recovered in a civil action brought in the name
of the people of the State of California by the commissioner
in any court of competent jurisdiction (Financial Code Section
22713).
5)Provides that whenever, in the opinion of the commissioner,
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any person is engaged in the business as a broker or finance
lender, or a mortgage loan originator, without a license from
the commissioner, or any licensee is violating any provision
of the CFLL, the commissioner may order that person or
licensee to desist and to refrain from engaging in the
business or further violating the CFLL. If a written request
for a hearing is filed by the recipient of an order within 30
days after the order is served, and no hearing is held within
30 days thereafter, the order is rescinded (Financial Code
Section 22712).
FISCAL EFFECT: None
COMMENTS: This bill is a technical bill designed to clarify
DBO's authority that rules and regulations promulgated under the
CFLL are enforceable against licensees engaged in real estate
transactions.
Analysis Prepared by:
Mark Farouk / B. & F. / (916) 319-3081 FN:
0001294