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Which statement best describes the relationship between a CFL license and California constitutional usury limits for mortgage lending?

Correct Answer

A) A CFL license can provide a statutory exemption from Article XV usury limits, but the licensee still must comply with CFL, covered-loan, and other applicable mortgage laws

California Article XV includes exemptions for regulated lender categories, and CFL licensees must still comply with CFL, covered-loan, and other applicable mortgage rules. The legacy item used an unsupported loan-amount shortcut.

Answer Options
A
A CFL license can provide a statutory exemption from Article XV usury limits, but the licensee still must comply with CFL, covered-loan, and other applicable mortgage laws
B
A CFL license never affects usury analysis under Article XV
C
A CFL license allows any fee, rate, or term on every residential mortgage loan
D
A CFL license applies only to agricultural loans and never to residential mortgage activity

Why This Is the Correct Answer

California Article XV includes exemptions for regulated lender categories, and CFL licensees must still comply with CFL, covered-loan, and other applicable mortgage rules. The legacy item used an unsupported loan-amount shortcut.

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