Finance lenders and brokers must obtain a finance lenders license before conducting business in California. The licensing requirements depend on whether the company performs residential lending or brokering services. If the company acts as a broker for residential loans, applicants must do the following:
State of California, Department of Corporations
Personal Credit Check of Business Owner(s)
1 Year - $188*
* For qualified applicant based on underwriting and personal credit score.
All persons applying for a California Finance Lender license are required to post and maintain a surety bond in the amount of $25,000 (California Financial Code Section 22112). A finance lender is defined as any person engaged in the business of making consumer or commercial loans. In addition to the bond, the finance lender must also maintain a net worth of $25,000 at all times.
The bond is required by the State of California to be used for the recovery of expenses, fines, and fees levied by the commissioner in accordance with this division or for losses or damages incurred by borrowers or consumers as the result of a licensee's noncompliance with the requirements of this division (California Financial Code Section 22112).
The bond is payable to Commissioner of Corporations and protects any person who sustains a loss caused by the Finance Lender. Any person who sustains an injury covered by this bond may, in addition to any other remedy he or she may have, bring an action in his or her own name upon this bond for the recovery of any damages sustained
Each applicant must first complete and submit the application for a Finance Lender Bond, which contains all of the pertinent information regarding the business and business owners.
Once the application hasbeen received, a routine examination of the business owner’s/applicant’s personal credit history will be performed in addition to a review of the applicant’s financial strength and experience to determine approval for the bond. Upon receipt of the application, our agency will be able to provide a response as to approval for the Finance Lender Bond within one to two business days. Once the application is approved, the bond will be executed and released to the applicant upon receipt of payment and original signed application.
Once the Finance Lender Bond has been approved and released to the applicant’s care, it must be filed with the Department of Corporations. The Department of Corporations will maintain the bond, which must remain effective at all times to prevent the revocation of the Finance Lender license. If for any reason the bond is suspended or canceled, the license will be suspended until the bond is restored or is replaced.
* Please be advised that the quote you obtain for this bond may include a fee charged and retained by The Bond Exchange.