|Posted by: Pat Apr 1 2004, 12:00 PM
| Good Morning,
I would like to broker commercial loans: business loans, factoring, etc;
but do i need to have a license of some kind to this. I live in California. If someone could please let me know. Thank you.
|Posted by: loanuniverse Apr 1 2004, 04:05 PM
I am not in California, but I was able to gather the following information from a couple of agencies:
From the Department of Financial institutions
It seems that someone asked them to provide an opinion regarding whether or not loan brokering is regulated by them.
The person asking the question provided the following information:
” ________ acts as an agent for community banks in connection with home equity loans offered by such banks. ________ will solicit loan business for a bank by calling potential borrowers on behalf of the bank based on prospect lists furnished by the bank or a third party. It will also send interested persons loan applications and other written materials furnished by the bank. It will answer questions regarding the bank's loan program and may take loan applications over the phone. It may also run a credit bureau check on potential borrowers. It will forward all such information to the bank, and the bank is exclusively responsible for any lending decision. ________ does not deal with bank customers or potential bank customer face-to-face. All contacts with potential borrowers will be by phone. ________ does not find lenders for potential borrowers and does not collect any fees from borrowers.”
The DFI gave them the following answer:
” This Department administers the California Banking Law (Division 1 (commencing with Section 99) of the California Financial Code) which relates to the regulation of state banks. In our view, the activities that you described would not require the issuance of a license under the Banking Law. We offer no opinion as to any law that may be applicable to the proposed services other than the California Banking Law. In addition, our views relate exclusively to the facts discussed above. Should those facts change, our opinion might be different.
This Department does not regulate loan brokers. If you wish to determine whether the above-described activities require a license as a loan broker, we recommend that you contact the California Department of Real Estate.”
I went to the California Department of Real Estate’s website located at http://www.dre.ca.gov/ but could not find a definite answer.
In your position, I would contact both departments directly and explain your request as completely as possible and ask for information on licensing.
Hope this helps.