September 17, 2021

Volume XI, Number 260

Advertisement

September 17, 2021

Subscribe to Latest Legal News and Analysis

September 16, 2021

Subscribe to Latest Legal News and Analysis

September 15, 2021

Subscribe to Latest Legal News and Analysis

For Finance Lenders, The Times They Are A-Changing

The California Financing Law (fka Finance Lenders Law) requires that persons engaged in the business of making loans be licensed by the Department of Financial Protection & Innovation (fka Department of Business Oversight fka Department of Corporations).  Both consumer and commercial lenders are subject to the CFL, including those that make residential mortgage loans.  The DFPI has for some time required residential mortgage lenders and brokers to file license applications through the Nationwide Multistate Licensing System (NMLS).  Other lenders used the infamous "long form" application.  Recently, however, the DFPI has announced that non-residential mortgage lenders and brokers may apply through the NMLS. 

The DFPI's website initially contained inconsistent messaging on the transition - one page stated that all applicants must now file through the NMLS while another page stated that filing through the NMLS is optional.  I checked with the DFPI which has confirmed that for the time being the long form may still be used for the time being.   However, if your time to you is worth savin', it makes sense to file through NMLS because the license must eventually be transitioned to the NMLS.

Existing licensees must soon start swimmin or they will sink like stone, for the times for them are a-changing as well.  The DFPI has stated that when the NMLS becomes mandatory for all applicants, current licensees will be required to transition their licenses and bond to the NMLS.  The DFPI expects this will occur by the end of this year.  This change will undoubtedly shake the windows and rattle the walls of both the DFPI and its licensees.

© 2010-2021 Allen Matkins Leck Gamble Mallory & Natsis LLP National Law Review, Volume XI, Number 154
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement

About this Author

Keith Paul Bishop, Corporate Transactions Lawyer, finance securities attorney, Allen Matkins Law Firm
Partner

Keith Bishop works with privately held and publicly traded companies on federal and state corporate and securities transactions, compliance, and governance matters. He is highly-regarded for his in-depth knowledge of the distinctive corporate and regulatory requirements faced by corporations in the state of California.

While many law firms have a great deal of expertise in federal or Delaware corporate law, Keith’s specific focus on California corporate and securities law is uncommon. A former California state regulator of securities and financial institutions, Keith has decades of...

949-851-5428
Advertisement
Advertisement
Advertisement