The DFPI can impose civil penalties for violations of California's predatory lending law up to:
Correct Answer
B) $25,000 per violation
The DFPI can impose civil penalties of up to $25,000 per violation of California's predatory lending provisions.
Why This Is the Correct Answer
The DFPI can impose civil penalties of up to $25,000 per violation of California's predatory lending provisions.
Why the Other Options Are Wrong
Option A: $10,000 per violation
$10,000 is the per-violation penalty under the CFL for unlicensed lending, not predatory lending violations.
Option C: $50,000 per violation
$50,000 exceeds the per-violation maximum for predatory lending.
Option D: $100,000 per violation
$100,000 is not the correct penalty amount under the predatory lending statute.
Memory Technique
CA -> ca-covered-loans-high-cost-consumer-protections
Exam Tip
Covered-loan questions often test the 8-point APR trigger, 6 percent points-and-fees trigger, principal-dwelling scope, Consumer Caution notice timing, ATR, prepayment penalty limits, prohibited loan terms, and remedies.
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
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