Under the California Financing Law (CFL), what is the MINIMUM net worth requirement for a company applying for a CFL license to act as a mortgage lender?
Correct Answer
C) $250,000
Under the California Financing Law, a company seeking to act as a licensed finance lender (which includes mortgage lending) must demonstrate a minimum net worth of $250,000. This threshold ensures that licensees have adequate capitalization to operate responsibly and protect consumers.
Why This Is the Correct Answer
Under the California Financing Law, a company seeking to act as a licensed finance lender (which includes mortgage lending) must demonstrate a minimum net worth of $250,000. This threshold ensures that licensees have adequate capitalization to operate responsibly and protect consumers.
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