A California company wants to broker consumer loans without making loans directly. They need a:
Correct Answer
C) CFL finance broker license
Companies that arrange or broker consumer loans without funding them directly need a CFL finance broker license from the DFPI.
Why This Is the Correct Answer
Companies that arrange or broker consumer loans without funding them directly need a CFL finance broker license from the DFPI.
Why the Other Options Are Wrong
Option A: CFL finance lender license
A finance lender license is for entities that make loans with their own funds, not for those who only broker loans.
Option B: CRMLA license
CRMLA covers residential mortgage lending, not general consumer loan brokering under $5,000.
Option D: No license is required for brokers
California does require licensing for consumer loan brokers. Operating without a license is illegal.
Memory Technique
CA -> ca-crmla-lenders-servicers-bonds-net-worth-servicing
Exam Tip
CRMLA questions usually turn on lender versus servicer authority, branch authority, $250,000 net worth, surety bond coverage, servicing duties, DFPI oversight, and exemptions for regulated depository institutions.
Common Mistakes to Avoid
- -Using a national baseline answer when California has agency-specific DFPI or DRE requirements
- -Confusing CFL, CRMLA, covered-loan, usury, servicing, and DRE endorsement rules
- -Relying on legacy California state-exam or education assumptions instead of current NMLS source pages
More UST Questions
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