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AB-986 Finance lenders.(2011-2012)

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AB986:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2011–2012 REGULAR SESSION

Assembly Bill
No. 986


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   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.