A CFL licensee makes commercial loans only, employs 0 mortgage loan originators, and asks what net worth it must keep against its 90 open accounts. What general net-worth floor applies to this commercial-only licensee?
Correct Answer
B) At least $25,000 at all times, which is the general licensee figure here
The general requirement is a net worth of at least $25,000 at all times; the larger figures attach to licensees employing mortgage loan originators on residential mortgage loans. Other choices: $50,000 and $250,000 are those larger figures rather than the base; and there is a minimum, so commercial-only lending does not escape it. Source: Cal. Fin. Code § 22104(a)
Why This Is the Correct Answer
The general requirement is a net worth of at least $25,000 at all times; the larger figures attach to licensees employing mortgage loan originators on residential mortgage loans. Other choices: $50,000 and $250,000 are those larger figures rather than the base; and there is a minimum, so commercial-only lending does not escape it. Source: Cal. Fin. Code § 22104(a)
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