The California Department of Business Oversight, Financial Services Division is tasked with the oversight of licensure and regulations of finance lenders, payday lenders, escrow agents and escrow companies, mortgage servicers, mortgage and other non-bank lenders and other financial service providers.
A California Finance Lender (CFL) is defined as anyone that makes consumer or commercial loans. A finance broker is defined as a person that negotiates or performs an act in connection with loans made by a finance lender.
Section 22100 of the California Financial Code defines the license requirements which includes a minimum net worth of at least $25,000 and requires a minimum surety bond of $25,000. None of the principals of the company can have a criminal history and must have a history of regulatory compliance.
California Finance Lender Licensees who originate mortgage loans are also required to keep a minimum $25,000 surety bond. The bond amount is based on the amount of activities conducted by the licensee. The surety bond amount will be based on the aggregate dollar amount of residential mortgage loans originated by the licensee in the preceding calendar year, as follows:
|Aggregate Loans||Bond Amount|
|0 - $1,000,000||$ 25,000 Surety Bond|
|$1,000,001 - $50,000,000||$ 50,000 Surety Bond|
|$50,000,001 - $500,000,000||$100,000 Surety Bond|
|Over $500,000,001||$200,000 Surety Bond|
The premium you pay for a California Finance Lender Surety Bond is dependent on credit and the bond amount required.
Finance lenders in California can write either secured or unsecured loans. Secured loans can be secured with personal property. If the loan is more than $5,000, it can be secured with a combination of personal and real property or by real property alone.
Check out our FAQ page or What’s a Surety Bond? page. Should you need or choose to buy a surety bond, buy from us. SuretyGroup.com has been underwriting surety bonds throughout the U.S. for more than 35 years. When you work with us, you enjoy the unique benefit of dealing with a team of highly experienced surety agents with in-house underwriting authority. This allows you to receive competitive, low rates, quick approvals, and immediate bond delivery. In most cases, your bond will be delivered within 24 hours after you apply for it.
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