1. (1) Consumer Loan -- a loan, whether secured by real or personal property, or both, or unsecured, the proceeds of which are intended by the borrower for use primarily for personal, family, or household purposes.

   Consumer loan also includes a loan of a principal amount of less than $5,000, the proceeds of which are intended by the borrower for use primarily for other than personal, family, or household purposes. An example is a loan of $4,000 used for your rental business.

   For the purpose of completing “Auto Title Loans” in Schedule F, an auto title loan has the characteristics of a short-term loan (typically 12 to 36 months) in which a borrower with clear title to his or her vehicle may immediately receive a loan secured by the borrower's vehicle. These loans typically are more than $2,500 and have a higher interest rate. The loans differ from traditional auto loans, which are financed and secured by a lien on the vehicle in the purchase or refinance of a car.

2. (2) Commercial Loan -- means a loan principal amount of $5,000 or more, or any loan under an open-end credit program, whether secured by real or personal property, or both, or unsecured, the proceeds of which are intended by the borrower for use primarily for other than personal, family, or household purposes.

3. (3) Open-End Credit Loans (Revolving Credit Loans): For the purposes of completing Schedules E, F, and G for open-end credit loans, the following guidelines must be followed:

   1. (a) Total all advances made during the year under the same open-end credit loan agreement. This total constitutes the “Principal Amount” of the loan and counts as one loan made in Schedules E, F and G.

   2. (b) Classify the loans by size, by the total advances made during the year. As an example, if five advances were made in 20XX amounting to $15,000 under the same line of credit agreement of $5,000, it should be reported as one loan made under “Number of Loans”, $15,000 under “Principal Amount”, and under the column “Loans $10,000 or More” in Schedules E, F and G.

      SCHEDULE I (SALE OF LOANS TO INSTITUTIONAL INVESTORS AND LOANS SERVICED): Item 2 -- Loans Serviced Under the California Finance Lenders License must include all loans originated, purchased or sold.

      SCHEDULED K (DIRECTORY OF DIRECTORS, OFFICERS, ETC.): All licensees must provide information on all directors, officers, members, managing members, branch managers and any person (as defined in Section 22008 of the Financial Code) owning or controlling directly or indirectly 10 percent or more of the outstanding interests or equity securities. If an individual was required to be included in the initial application for a license under the California Finance Lenders Law or in a subsequent report of changes in personnel, the individual must be included in Schedule K.

      A self-designed form may be substituted in place of Schedule K if a licensee has more than 21 directors, officers, members, managing members, branch managers or persons holding 10 percent or more of the outstanding interests. The self-designed form must contain at a minimum the information required in Schedule K.

      For any individual listed in Schedule K who has not submitted a Statement of Identity and Questionnaire (FS 512 SIQ), submit the Statement of Identity and Questionnaire for the individual when filing the completed annual report. The Statement of Identity and Questionnaire is available on the Department of Business Oversight's website at www.dbo.ca.gov.

      The information in Schedule K will be considered confidential information, and will be filed and maintained as part of the confidential records not subject to public inspection.

      SCHEDULE L (CFLL REPORT ON NON-TRADITIONAL, ADJUSTABLE RATE AND MORTGAGE LOAN PRODUCTS, AND LOAN SURVEY): All licensees are required to complete Schedule L by indicating whether they made or arranged nontraditional mortgage products and adjustable rate mortgage products as defined by the Guidance. The Guidance is available on the Department's website at www.dbo.ca.gov. If any loans subject to the Guidance were made or arranged, the licensee must also submit information regarding those loan products in the Loan Survey under Schedule L.

      SCHEDULE M (ADDITIONAL LOAN INFORMATION): All licensees must complete Schedule M by answering the mortgage related questions in items 1 and 3, and indicating in item 2 the type of loan programs that were provided to applicants during the calendar year. Information regarding the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act) can be found on the Department's website at www.dbo.ca.gov.

      SCHEDULE N (LOAN ACTIVITY): All licensees must report activity concerning consumer loans they serviced during the year by type of security in item A, and provide the total number of loans and the total principal amount of loans that were not made under the California Finance Lenders Law license for both consumer and commercial loans in items B and C.

      SCHEDULE O (CONFIDENTIAL -- DEFAULT RATES BY TYPE OF LOAN): Provide information on default rates for the year by type of loan. The information provided in Schedule O shall remain confidential and not subject to public inspection.

      LICENSEES OPERATING IN MULTIPLE STATES: If you conducted business in California and in other states, the additional guidelines must be followed:

4. (1) SCHEDULE B-1 (BALANCE SHEET) -- Complete the balance sheet in the name of the entity listed on the license. Do not complete the schedule for the California operation only. Complete line 3, CFLL Loan Receivables, in Schedule B-1 only for those loans that were made under the California Finance Lenders license. All other loans and receivables not under the California Finance Lenders license should be reported on line 4, Other Receivables.

5. (2) SCHEDULE C-1 (STATEMENT OF INCOME AND EXPENSES) -- Complete the Statement of Income and Expenses in the name of the entity listed on the license. Do not complete the schedule for the California operation only. Include on line 1, Gross Income from CFLL Loans and CFLL Brokered Loans, only income generated under the California Finance Lenders license. All other income earned, whether in California or out of state, must be reported on line 2, Gross Income from All Other Business and Sources.

   ANNUAL REPORT FORM AVAILABLE ON THE INTERNET: The annual report form is available in Adobe Acrobat format on the Department's website at “www.dbo.ca.gov”.

   The form may be completed online; however, THE ANNUAL REPORT CANNOT BE FILED ELECTRONICALLY. If the report is completed online, it must be printed in the Adobe Acrobat format and submitted to the Department of Business Oversight in paper form. Please be sure to include your license number on the annual report to prevent any delays in processing your annual report. If you receive an annual report form from the Department of Business Oversight in the mail, include the information on the mailing label on the annual report you file with the Department of Business Oversight. It is important to include your seven-digit license number. It is the Department of Business Oversight primary means of linking your annual report to your company.

   VERIFICATION: The Verification section must be completed in accordance with the instructions by the licensed individual, a general partner if the licensee is a partnership, a manager if the licensee is a limited liability company, or a corporate officer if the licensee is a corporation. The Verification must be signed on the original copy of the report filed with the Department of Business Oversight. An incomplete or unsigned Verification will result in rejection and return of the annual report to the licensee.

   FEE: No fee is required to file the annual report.

   PUBLIC INSPECTION: The individual annual reports filed pursuant to Financial Code Section 22159 shall be made available to the public for inspection, except for Schedule O which includes information of a proprietary business nature and shall remain confidential and not subject to public inspection, and upon request, the balance sheet contained in the annual report of a sole proprietor or any other nonpublicly traded persons. “Nonpublicly traded persons” for purposes of this section mean persons with securities owned by 35 or fewer individuals.

   If a sole proprietor or licensee meeting the definition of nonpublicly traded persons is requesting confidential treatment of the balance sheet, the Request for Confidential Treatment in Schedule B-1 must be completed.

   FOR ASSISTANCE AND INFORMATION REGARDING THE ANNUAL REPORT: Contact the Department of Business Oversight at telephone 1-866-275-2677.

   DEPARTMENT OF BUSINESS OVERSIGHT

   PLEASE READ THE ATTACHED INSTRUCTIONS CAREFULLY BEFORE COMPLETING THE ANNUAL REPORT.

   To: COMMISSIONER OF BUSINESS OVERSIGHT, STATE OF CALIFORNIA

   ANNUAL REPORT

   LICENSEES ENGAGED IN BUSINESS UNDER THE

   CALIFORNIA FINANCE LENDERS LAW (CFLL)

   (Finance Lender and Broker)

   For the Year Ended December 31, 20XX

   SCHEDULE A

   GENERAL INFORMATION

6. 1. Name of Licensee (as shown on the license) and Address of Main Office: __________

7. 2. Business Phone No.: (__________) ______________________________ Fax No.: (__________) ______________________________

   Website Address:

   E-mail Address:

8. 3. Address Change: If you wish to change the address of your place of business, you must submit a Change of Address Form (1/2014), hereby incorporated by reference, to the Department of Business Oversight. The Change of Address form must be received by the Department of Business Oversight ten (10) days prior to the date of your move, or the Department of Business Oversight may assess an administrative penalty of $500. The Change of Address form is available on the Department's website at www.dbo.ca.gov.

9. 4. Office Hours:

   5.

   a) License Number for Main Office:

   b) NMLS Number (if applicable):

   6.

   Licensed Authority:

10. A. ​ Lender Only
11. B. ​ Lender and Broker
12. C. ​ Broker Only

13. 7. Total Number of Licenses Held at December 31, 20XX: ______________________________

    8.

    Type of Organization:

    ​ Corporation

    ​ Partnership

    ​ Individual

    ​ Limited Liability Company

    ​ Other (specify)

14. 9. Person Preparing the Annual Report:

    Signature

    Name and Title (Typed)

    Phone No.: (_____)

    Email Address:

    VERIFICATION

    STATE OF

    )

    ) SS.

    COUNTY OF

    )

    I, the undersigned, state: That I am an officer, a general partner or the sole proprietor, or have a position of similar proprietary interest of (insert name of licensee as shown on the license)

    and I have read and signed the report and the documents filed herewith and know the contents thereof. I certify that the financial statements contained therein were prepared in conformity with generally accepted accounting principles consistently applied, and the statistical information supplied is to the best of my knowledge true and exact.

    Additional certification of licensees with two or more licensed locations:

    By signing this report I hereby authorize the Commissioner to contact our main office regarding issues and concerns for all branches of the company.

    Complete Section (A) OR Section (B) as appropriate.

15. (A) IF LOCATED IN CALIFORNIA OR IN A STATE WHICH PERMITS A DECLARATION UNDER PENALTY OF PERJURY, COMPLETE THIS SECTION. NOTARIZATION IS NOT NECESSARY.

    Date_________

    -____________, ____________,

    (Month/Day)

    (Year)

    (City)

    (State)

    I certify (or declare) under the penalty of perjury that the foregoing is true and correct.

    ______________________________

    Signature of Declarant

    ______________________________

    Name and Title (Typed)

16. (B) IF LOCATED OUTSIDE OF CALIFORNIA IN A STATE WHICH DOES NOT PERMIT A DECLARATION UNDER PENALTY OF PERJURY, COMPLETE THIS SECTION. NOTARIZATION IS REQUIRED.

    Date ,

    (Month/Day)

    (Year)

    Signature of Affiant

    at

    (City)

    Name and Title (Typed)

    Subscribed and sworn to before me on

    (State)

    ,

    Month/Date)

    (Year)

    (Seal)

    Notary Public in and for said County and State

    TABLE OF SCHEDULES TO BE COMPLETED

    The following schedules in the annual report must be completed:

17. A. If you are licensed as a CFLL LENDER, complete:

    SCHEDULE

    SCHEDULE

    A

    G

    VERIFICATION

    H

    B-1

    I

    B-1(a)

    J

    B-2

    K

    C-1

    L

    C-2

    M

    C-3

    N

    E

    O

    F

18. B. If you are licensed as a CFLL BROKER, complete:

    SCHEDULE

    SCHEDULE

    A

    C-2

    VERIFICATION

    C-3

    B-1

    D

    B-1(a)

    J

    B-2

    K

    C-1

    L and M

19. C. If you are licensed as both a CFLL LENDER and CFLL BROKER, complete all schedules.
20. D. If any schedule is inapplicable, indicate “Not Applicable” at the top of the schedule.
21. E. The Verification section must be completed. AN UNSIGNED OR INCOMPLETE VERIFICATION WILL NOT BE ACCEPTED, AND WILL RESULT IN REJECTION AND RETURN OF THE ANNUAL REPORT TO THE LICENSEE.
22. F. If no business was conducted under the license(s) during the year, complete Schedules A through C-3, Schedule K and Verification section only. The remaining pages need not be submitted. “No business” means no loans were made, refinanced, or brokered in the calendar year, and no loan payment or broker fee was received during the year. Include the following statement at the bottom of the Verification section, “No business was conducted under the license(s) during the calendar year 20XX.”
23. G. Your annual assessment is based on the gross income you report on activities conducted under your California Finance Lenders Law license (Schedule C-1, Statement of Income and Expense, Line 1). Income earned under other state or federal lending licenses, activities not requiring a license, or activities conducted under licenses of other government agencies should be reported on Schedule C-1, Line 2.

24. H. For purposes of completing the annual report, all income derived from loans originated under the Personal Property Broker, Consumer Finance Lender, and /or Commercial Finance Lender Laws should be treated as income earned under the California Finance Lenders Law.

    SCHEDULE B-1

    BALANCE SHEET

    AS OF DECEMBER 31, 20XX

    Name of Licensee:

    CFLL License No.

    ASSETS

    1.

    Cash

    $

    2.

    Investments

    3.

    CFLL Loan Receivables (must equal Schedule B-2, line 6)

    4.

    Other Receivables (must equal Schedule B-2, line 14)

    5.

    Reserves and Withholds by Banks and Finance Companies

    6.

    Fixed Assets (Less: Accumulated Depreciation $

    )

    (Fixed assets include land, buildings, equipment, furniture and fixtures, automobiles, and leasehold improvements, less accumulated depreciation.)

    7.

    Prepaid Expenses and Deferred Charges

    8.

    Commissions Receivables

    9.

    Other Assets

    10.

    Total Assets (sum of lines 1 thru 9 and must equal line 22)

    $

    LIABILITIES AND NET WORTH

    11.

    Loans and Notes Payable from Third Parties

    $

    12.

    Loans and Notes Payable from Parents and Affiliates

    13.

    Bonds, Debentures, and Certificates of Indebtedness

    14.

    Accounts Payable

    15.

    Dealers Reserves and Withholds

    16.

    Accrued Taxes Other Than Income Tax

    17.

    Reserve for Income Taxes

    18.

    Credit Insurance Premiums Due Insurer

    19.

    Other Liabilities and Accruals

    20.

    Total Liabilities (sum of lines 11 thru 19)

    $

    21.

    Net Worth (line 10 less line 20 and must equal Schedule B-1(a), line 10, 13, 14 or 19)

    $

    22.

    Total Liabilities and Net Worth (add lines 20 & 21 and must equal line 10)

    $

    SCHEDULE B-1

    REQUEST FOR CONFIDENTIAL TREATMENT

    Name of Licensee (as shown on the license):

    CFLL License Number:

    PURSUANT TO SECTION 22159(a) OF THE FINANCIAL CODE, I REQUEST CONFIDENTIAL TREATMENT OF THE BALANCE SHEET. THE LICENSEE QUALIFIES FOR CONFIDENTIAL TREATMENT OF THE BALANCE SHEET AS A:

    (CHECK ONE)

    SOLE PROPRIETOR

    ​

    “NONPUBLICLY TRADED PERSON” (persons with securities owned by 35 or fewer individuals)

    ​

    By:

    Signature of Authorized Person

    Name(typed):

    Position:

    SCHEDULE B-1(a)

    CALCULATION OF NET WORTH AS OF DECEMBER 31, 20XX

    Name of Licensee: ____________________________________________________________ CFLL License No. ____________________

    FOR CORPORATIONS:

25. 1. Common Stock

    $

26. 2. Preferred Stock
27. 3. Paid In Capital in Excess of Par

28. 4. Less: Treasury Stock, Donated Stock, etc

    ( )

29. 5. Total Capital (sum of lines 1 thru 4)

    $

30. 6. Retained Earnings at 01/01/XX

    $

31. 7. Adjustments to Retained Earnings
32. 8. Net Income or Loss (from Schedule C-1, line 23)
33. 9. Retained Earnings at 12/31/XX (sum of lines 6 thru 8)

34. 10. Total Net Worth (sum of lines 5 and 9, and must equal Schedule B-1, line 21)

    $

    FOR PARTNERSHIPS:

35. 11. Partnership Capital Accounts:

    Name (General Partners)_______

    Percentage

    Amount

    $

36. 12. Limited Partners (in total)

37. 13. Total Net Worth (sum of lines 11 and 12, and must equal Schedule B-1, line 21)

    $

    FOR INDIVIDUALS, TRUSTEES, AND OTHERS:

38. 14. Net Worth of Individuals, Trustees, and Others (enter amount from Schedule B-1, line 21)

    $

    FOR LIMITED LIABILITY COMPANIES:

39. 15. Members' Contributions
40. 16. Members' Draws
41. 17. Members' Equity
42. 18. Net Income (Loss) (from Schedule C-1, line 23)

43. 19. Total Members' Equity (sum of lines 15-18, and must equal Schedule B-1, line 21)

    $

    SCHEDULE B-2

    ANALYSIS OF LOANS AND RECEIVABLES OUTSTANDING AS OF DECEMBER 31, 20XX

    CALIFORNIA FINANCE LENDERS LOAN RECEVABLES:

    ___Aggregate Balance

    (may include outstanding receivables originated under the Personal Property Broker, Consumer Finance Lender, and Commercial Finance Lender laws)

    1.

    Consumer Loans

    $

    2.

    Commercial Loans

    3.

    Subtotal (sum of lines 1 and 2)

    $

    4.

    Less: Unearned Pre-computed Charges

    ( )

    5.

    Less: Allowance for Bad Debts

    ( )

    6.

    Net California Finance Lenders Loan Receivables (sum of lines 3 thru 5 and must equal Schedule B-1, line 3)

    $

    OTHER RECEIVABLES NOT SUBJECT TO THE CFLL:

    (See instructions for Schedule B-2 for classification of receivables)

    ___Aggregate Balance

    7.

    Sales Contracts

    $

    8.

    Leases (True leases)

    9.

    Factoring

    10.

    Others

    11.

    Subtotal (sum of lines 7 and 10)

    $

    12.

    Less: Unearned Pre-computed Charges

    ( )

    13.

    Less: Allowance for Bad Debts

    ( )

    14.

    Net Other Receivables (sum of lines 11 thru 12, and must equal Schedule B-1, line 4)

    $

    SCHEDULE C-1

    STATEMENT OF INCOME AND EXPENSES FOR CALENDAR YEAR 20XX

    INCOME

    1.

    Gross Income from CFLL Loans and CFLL Brokered Loans (from Schedule C-2, line 16). REPORT ONLY CFLL GROSS INCOME ON THIS LINE

    $

    2.

    Gross Income from All Other Business and Sources (from Schedule C-3, line 7)

    3.

    Total Gross Income (sum of lines 1 and 2)

    $

    EXPENSES

    4.

    Loss on Loan Receivables

    $

    5.

    Professional Audit and Accounting Services

    6.

    Insurance and Bond Premiums

    7.

    Legal Services and Expenses

    8.

    Occupancy Expenses

    9.

    Provision for Bad Debt Allowance

    10.

    Salaries and Bonuses: Employees

    11.

    Salaries and Bonuses: Owners, Partners, Executives

    12.

    Depreciation

    13.

    License Fees and Taxes

    14.

    Telephone and Utilities

    15.

    Advertising and Promotions

    16.

    Other Expenses

    17.

    Total Expenses Before Interest and Income Taxes (sum of lines 4 thru 16)

    $

    18.

    Income or (loss) Before Interest and Income Taxes (line 3 less line 17)

    $

    19.

    Interest Paid to Bona Fide Third Parties

    20.

    Interest Paid to Parent Company and Affiliates

    21.

    Income or (Loss) Before Income Taxes (subtract lines 19 and 20 from line 18)

    $

    22.

    Provisions for Income Taxes

    23.

    Net Income or (Loss) (line 21 less line 22)

    $

    (If the licensee is incorporated, the Net Income or Loss amount in line 23 must agree with Schedule B-1(a), line 8.)

    SCHEDULE C-2

    ANALYSIS OF INCOME RECEIVED FROM CFLL LENDERS AND BROKERS LOANS FOR CALENDAR YEAR 20XX

    Loans Under $2,500 (Column 1)

    Loans of $2,500 or More (Column 2)

    Total (Column 3)

    CFLL LENDERS AND BROKERS LOANS:

    CONSUMER LOANS:

    1.

    Charges Earned or Collected from Loans

    $

    $

    $

    2.

    Collection from Charged Off Accounts

    3.

    Income from Credit Insurance

    4.

    Other Insurance Commissions

    5.

    Administrative and Loan Fees

    6.

    Commissions from Brokering CFLL Consumer Loans (from Schedule D, line 8)

    7.

    Other Income

    8.

    Total Consumer Loans Income (sum of lines 1 thru 7)

    $

    $

    $

    COMMERCIAL LOANS:

    9.

    Charges Earned or Collected from Loans

    $

    10.

    Collection from Charged Off Accounts

    11.

    Income from Credit Insurance

    12.

    Other Insurance Commissions

    13.

    Commissions from Brokering CFLL Commercial Loans (from Schedule D, line 13)

    14.

    Other Income

    15.

    Total Commercial Loan Income (sum of lines 9 thru 14)

    $

    16.

    Total Gross Income from CFLL Loans and Brokered Loans (sum of line 8, column 3 and line 15, and must equal Schedule C-1, line 1)

    $

    SCHEDULE C-3

    ANALYSIS OF INCOME RECEIVED FROM OTHER BUSINESS AND SOURCES FOR CALENDAR YEAR 20XX

    ALL OTHER BUSINESS AND SOURCES:

    1.

    Charges Earned or Collected

    $

    2.

    Other Interest or Return on Investment

    3.

    Collection from Charged Off Accounts

    4.

    Income from Credit Insurance

    5.

    Other Insurance Commissions

    6.

    Other Income (describe below)

    7.

    Total Income from All Other Business and Sources (sum of lines 1 through 6, and must equal Schedule C-1, line 2)

    $

    Describe source(s) of other income reported on lines 1 through 6:

    SCHEDULE D

    SCHEDULE OF BROKERED LOANS FOR CALENDAR YEAR 20XX

44. A. SCHEDULE OF CFLL BROKERED LOANS (e.g., to any lender licensed under the CFLL)

    Name of Lender

    Lender's License Number

    Number of Loans Brokered

    Principal Amount of Loans

    Amount of Commissions Received

    LIST CONSUMER LOANS BROKERED:

    1.

    $

    $

    2.

    3.

    4.

    5.

    6.

    7.

45. 8. Total Consumer Loans Brokered (sum of lines 1 through 7, and must equal Schedule C-2, line 6, column 3)

    $

    $

    8a. Residential Mortgage Loans Brokered (see Schedule D instructions to complete this section)

    LIST COMMERCIAL LOANS BROKERED:

    9.

    $

    $

    10.

    11.

    12.

46. 13. Total Commercial Loans Brokered (sum of lines 9 through 12, and must equal Schedule C-2, line 13)

    $

    $

47. 14. Total Loans Brokered (sum of lines 8 and 13)

    $

    $

    Describe the method of computing commissions and how commissions are paid (i.e., in advance, from loan proceeds, etc.). If commissions are prepaid, describe the method of refunding commissions in the event a loan is not funded.

48. B. SCHEDULE OF OTHER BROKERED LOANS (e.g., to any lender not licensed under the CFLL)

    Total Number of Loans Brokered

    Total Principal Amount of Loans Brokered

    Total Amount of Commissions Received

    TOTALS

    $

    $

    Provide the name of the government agency and your broker license number authorizing you to broker other loans identified Section B:____________________

    SCHEDULE E

    CALIFORNIA FINANCE LENDERS LOANS MADE OR REFINANCED DURING THE YEAR BY SIZE OF LOAN FOR CALENDAR YEAR 20XX

    CONSUMER LOANS

    Loans of:

    Number of Loans

    Principal Amount

    1.

    $

    499 or Less

    $

    2.

    500 to 1,999

    3.

    2,000 to 2,499

    4.

    2,500 to 4,999

    5.

    5,000 to 9,999

    6.

    10,000 or More

    7.

    Total Consumer Loans Made (Sum of lines 1 through 6. Totals must equal Schedule F, line 27 and Schedule G, line 40.)

    $

    COMMERCIAL LOANS

    8.

    $ 5,000 or More

    $

    9.

    Total Commercial Loans Made (Totals must equal Schedule F, line 34 and Schedule G, line 49.)

    $

    10.

    Total Loans Made - All Categories (Sum of lines 7 and 9. Totals must equal Schedule F, line 35 and Schedule G, line 50)

    $

    SCHEDULE F

    CALIFORNIA FINANCE LENDERS LOANS MADE OR REFINANCED DURING THE YEAR BY TYPE OF SECURITY FOR CALENDAR YEAR 20XX

    CONSUMER LOANS

    Type of Security

    Number of Loans

    Principal Amount

    Loans Under $2,500

    1.

    Unsecured

    $

    2.

    Personal Property (Household Items)

    3.1

    Automobiles and Other Motor Vehicles

    3.2

    Auto Title Loans

    4.

    Wage Assignment

    5.

    Other Security

    6.

    Total Loans Made (sum of lines 1 through 5)

    $

    Loans $2,500 to $4,999

    7.

    Unsecured

    $

    8.

    Personal Property (Household Items)

    9.1

    Automobiles and Other Motor Vehicles

    9.2

    Auto Title Loans

    10.

    Wage Assignment

    11.

    Other Security

    12.

    Total Loans Made (sum of lines 7 through 11)

    $

    Loans $5,000 to $9,999

    13.

    Unsecured

    $

    14.

    Personal Property (household items)

    15.1

    Automobiles and Other Motor Vehicles

    15.2

    Auto Title Loans

    16.

    Wage Assignment

    17.

    Real Property

    18.

    Other Security

    19.

    Total Loans Made (sum of lines 13 through 18)

    $

    Loans $10,000 or More

    20.

    Unsecured

    $

    21.

    Personal Property (Household Items)

    22.1

    Automobiles and Other Motor Vehicles

    22.2

    Auto Title Loans

    23.

    Wage Assignment

    24.

    Real Property

    25.

    Other Security

    26.

    Total Loans Made (sum of lines 20 through 25)

    $

    27.

    Total Consumer Loans Made (sum of lines 6, 12, 19, and 26). Totals must equal Schedule E, line 7 and Schedule G, line 40)

    $

    COMMERCIAL LOANS ONLY

    28.

    Unsecured

    $

    29.

    Personal Property

    30.

    Automobiles and Other Motor Vehicles

    31.

    Business Equipment

    32.

    Real Property

    33.

    Other Security

    34.

    Total Commercial Loans Made (Sum of lines 28 through 33. Totals must equal Schedule E, line 9 and Schedule G, line 49.)

    $

    35.

    Total Loans Made - All Categories (sum of lines 27 and 34). Totals must equal Schedule E, line 10 and Schedule G, line 50.)

    $

    SCHEDULE G

    CALIFORNIA FINANCE LENDERS LOANS MADE OR REFINANCED DURING THE YEAR BY RATES CHARGED FOR CALENDAR YEAR 20XX

    CONSUMER LOANS ONLY

    Unsecured Loans

    Personal Property (household items)

    Automobiles and Other Motor Vehicles

    Auto Title Loans

    Wage Assignment

    Other Security

    Annualized Rate of Charge

49. No. of Loans

    Princ. Amount

50. No. of Loans

    Princ. Amount

51. No. of Loans

    Princ. Amount

52. No. of Loans

    Princ. Amount

53. No. of Loans

    Princ. Amount

54. No. of Loans

    Princ. Amount

    Loans Under $2,500

    1.

    Step Rate: 2.5%, 2%, 1.5%, & 1% Per Month

    2.

    Alternate Rates: 1.6% Per Month

    3.

    Federal Reserve Bank Rate plus 10%

    4.

    Up to 14.999 APR

    5.

    15.000 to 19.999 APR

    6.

    20.000 to 24.999 APR

    7.

    25.000 to 29.999 APR

    8.

    30.000 to 34.999 APR

    9.

    35.000 to 39.999 APR

    10.1.

    40.000 to 69.999 APR

    10.2.

    70.000 to 99.999 APR

    10.3.

    100.000 or More APR

    11.

    Intentionally Left Blank

    12.

    Total Loans Made (sum of lines 1thru11)

    Loan $2,500 to $4,999

    13.

    Up to 14.999 APR

    14.

    15.000 to 19.999 APR

    15.

    20.000 to 24.999 APR

    16.

    25.000 to 29.999 APR

    17.

    30.000 to 34.999 APR

    18.

    35.000 to 39.999 APR

    19.1.

    40.000 to 69.999 APR

    19.2

    70.000 to 99.999 APR

    19.3

    100.000 or More APR

    20.

    Intentionally Left Blank

    21.

    Total Loans Made(sum of lines 13thru 20)

    Loan $5,000 to $9,999

    22.

    Up to 14.999 APR

    23.

    15.000 to 19.999 APR

    24.

    20.000 to 24.999 APR

    25.

    25.000 to 29.999 APR

    26.

    30.000 to 34.999 APR

    27.

    35.000 to 39.999 APR

    28.1.

    40.000 to 69.999 APR

    28.2.

    70.000 to 99.999 APR

    28.3.

    100.000 or More APR

    29.

    Intentionally Left Blank

    30.

    Total Loans Made(sum of lines 22 thru 29)

    Loan $10,000 or Over

    31.

    Up to 14.999 APR

    32.

    15.000 to 19.999 APR

    33.

    20.000 to 24.999 APR

    34.

    25.000 to 29.999 APR

    35.

    30.000 to 34.999 APR

    36.

    25.000 to 29.999 APR

    37.1.

    35.000 to 39.999 APR

    37.2.

    70.000 to 99.999 APR

    37.3.

    100.000 or More APR

    38.

    Intentionally Left Blank

    39.

    Total Loans Made(sum of lines 31 thru 38)

    40.

    Total Consumer Loans Made(sum of lines 12, 21, 30 & 39). Totals must equal Schedule E, Line 7 and Schedule F, Line 27.

    COMMERCIAL LOANS ONLY

    Note Rate or Contract Rate

    Number of Loans

    Principal Amount

    41.

    Up to 14.999

    $

    42.

    15.000 to 19.999

    43.

    20.000 to 24.999

    44.

    25.000 to 29.999

    45.

    30.000 to 34.999

    46.

    35.000 to 39.999

    47.1

    40.000 to 69.999

    47.2

    70.000 to 99.999

    47.3

    100.000 or More

    48.

    Variable Rates Based on Index

    49.

    Total Commercial Loans Made (Sum of lines 41 through 48. Totals must equal Schedule E, line 9 and Schedule F, line 34.)

    $

    50.

    Totals Loans Made - All Categories (Sum of lines 40 and 49. Totals must equal Schedule E, line 10 and Schedule F, line 35.)

    $

    SCHEDULE H

    CREDIT INSURANCE GENERAL INFORMATION

55. 1. Provide the name(s) and address(s) of insurance company(s) underwriting your credit insurance.

    Name:

    Address:

56. 2. Is the insurance company(s) named in item 1 above a parent corporation, affiliated company, or in any other manner connected with you: Yes ​ No ​

    If the answer to item 2 is “yes”, explain the relationship:

57. 3. Credit insurance premiums charged per year per hundred dollars of initial indebtedness:

    Single Premium

    Credit Life

    Joint Coverage

    $

    Personal Property

    $

    $

    Real Property

    $

    Credit Disability

    $

    Personal Property

    $

    $

    Real Property

    $

    Credit Loss-of-Income

    $

    Personal Property

    $

    $

    Real Property

    $

58. 4. Is the credit insurance premium deducted from loan proceeds? Yes ​ No ​

    If the answer is “no”, explain how the credit insurance proceeds are paid:

59. 5. Are the credit insurance premiums that have been collected from borrowers remitted in total to the carrier?

    Yes ​ No ​

    If the answer is “no”, provide an explanation:

60. 6. What is the age limit to qualify for credit insurance?

    Minimum

    Maximum

    Credit Life

    Credit Disability

    Credit Loss-of-Income

61. 7. Does the credit disability policy contain a “14-day” non-retroactive provision? Yes ​ No ​

    If the answer is “No”, provide an explanation:

62. 8. List exclusions from coverage, if any:

    SCHEDULE I

    SALE OF LOANS TO INSTITUTIONAL INVESTORS AND LOANS SERVICED FOR CALENDAR YEAR 20XX

63. 1. Loans Sold Pursuant to Financial Code Sections 22340, 22340.1, 22600 or 22600.1:

    1. A. Report only those loans originated under your California Finance Lenders license(s), or purchased from an institutional lender or from another licensee pursuant to Division 9 of the Financial Code, and subsequently sold to institutional investors.

64. No. of Loans Sold

    1. B. Loans Sold Under Other Authority

       Report only those loans originated under your California Finance Lenders license(s), or purchased from an institutional lender or from another licensee pursuant to Division 9 of the Financial Code that were sold, but not sold under the authority of the California Finance Lenders Law.

    Dollar Value of Loans Sold

    Dollar Amount of Loans Sold Retained for Servicing

    Servicing Fees Earned

    $

    $

    $

    Are these loans sold to institutional investors?

    Yes ​

    No ​

    Did you sell any of those loans to affiliated companies?

    Yes ​

    No ​

    Are trust accounts established for those loans serviced?

    Yes ​

    No ​

65. No. of Loans Sold

    Dollar Value of Loans Sold

    (License Number)

    Please state under which authority the loans were sold:

66. 2. Loans Serviced Under the California Finance Lenders License (includes all loans originated, purchased or sold):

    Report all loans you serviced as of December 31, 20XX.

    Loan Type

    Number of Loans

    Balance

    Servicing Fees Earned

    Residential Real Estate Secured

    $

    $

    All Other Loans

    $

    $

    SCHEDULE J

    OTHER BUSINESS ACTIVITIES AND COVERED LOANS

67. A. OTHER BUSINESS ACTIVITIES:

    Schedule J must be completed for any other activities conducted at the licensed locations(s), in addition to making and/or brokering loans under your California Finance Lender license(s).

    1.

    SALE OF INSURANCE PRODUCTS

    Insurer

    20XX Revenue

    Credit Life Insurance

    $

    Credit Disability Insurance

    Accidental Death & Dismemberment

    Personal Property Insurance

    Real Estate Loan Insurance

    Others (auto, whole life, etc.)

68. 2. OTHER SERVICES PROVIDED (Examples: loan servicing, leasing, automobile contracts, etc.)

    Description of Services Provided

    20XX Revenue

    License Authority (If Applicable)

    $

69. 3. BUSINESS CONDUCTED PURSUANT TO THE COMMODITY BROKERS LAW OF 1990

    (Example: Sale and/or financing of precious metals or other commodities)

    Describe Activity

    20XX Revenue

    License Authority (If Applicable)

70. 4. OTHER BUSINESS ACTIVITY CONDUCTED AT LICENSED LOCATION (not already included in items 1, 2, or 3 above.)

    Describe Activity

    20XX Revenue

    License Authority (If Applicable)

71. 5. LIST ANY OTHER LICENSES ISSUED BY STATE OF CALIFORNIA GOVERNMENT AGENCIES AND HELD BY THE LICENSEE:

    Name of License

    Name of Agency

    License Number

72. B. COVERED LOANS:

    This section must be completed by a licensee that made “covered loans” as defined in Financial Code Section 4970(b)(1).

    Number of Covered Loans

    Principal Amount

    $

    SCHEDULE K

    DIRECTORY OF DIRECTORS, OFFICERS, MEMBERS, MANAGING MEMBERS, BRANCH MANAGERS AND ANY PERSON OWNING OR CONTROLLING (DIRECTLY OR INDIRECTLY) 10% OR MORE OF INTEREST OR EQUITY SECURITIES

    Name of Licensee: ________________________________________________________________________________ CFLL License No. __________

    Complete the following directory for ALL directors, officers, members, managing members, branch managers and any person (as defined in Section 22008 of the Financial Code) owning or controlling directly or indirectly 10 percent or more of the outstanding interest or equity securities. If an individual was required to be included in the initial application for a license under the California Finance Lenders Law or in a subsequent report of changes in personnel, the individual must be included in this directory.

    A self-designed form may be substituted in place of Schedule K if a licensee has more than 21 directors, officers, members, managing members, branch managers and persons holding 10 percent or more of the outstanding interests. The self designed form must contain at a minimum the following information.

    In addition to this directory, submit a Statement of Identity and Questionnaire (SIQ), for those individuals who did not submit the SIQ to the Department previously. The SIQ form is available on the Department of Business Oversight's website at www.dbo.ca.gov.

    FULL NAME

    POSITION HELD

    % OF

    BUSINESS ADDRESS (Street, City,

    FIRST

    MIDDLE

    LAST

    OR TO BE HELD

    OWNERSHIP

    State & Zip Code)

    SCHEDULE L

    CFLL REPORT ON NON-TRADITIONAL, ADJUSTABLE RATE AND MORTGAGE LOAN PRODUCTS

    COMPANY NAME:

    LICENSE NUMBER:

    NMLS NUMBER:

    CONTACT PERSON:

    TELEPHONE NUMBER:

73. 1. During calendar year 20XX, did you make or arrange non-traditional mortgage products or adjustable rate mortgage products as defined by the Guidance?

74. a. Made non-traditional mortgage products?

    Yes ​

    No ​

75. b. Arranged non-traditional mortgage products?

    Yes ​

    No ​

76. c. Made adjustable rate mortgage products?

    Yes ​

    No ​

77. d. Arranged adjustable rate mortgage products?

    Yes ​

    No ​

    If the answer is “yes” to any of the above, complete items 1 through 4 of the Non-Traditional, Adjustable Rate and Mortgage Loan Survey below.

    If the answer is “no” to all of the above, complete item 1 of the Non-Traditional, Adjustable Rate and Mortgage Loan Survey below.

    NON-TRADITIONAL, ADJUSTABLE RATE AND MORTGAGE LOAN SURVEY

78. 1. License Information (to be completed by all licensees)

    CFLL License Number:

    Licensee Name:

    Name of Person Who Prepared this Survey:

    Preparer's Title:

    Telephone Number:

    Email Address:

79. 2. Does your company offer non-traditional mortgage products?

    Yes

    (Place an “x” in the appropriate category.)

    No

    (If “yes”, complete remaining survey)

80. 3. If “yes”, are they retained on the books or sold?

    Retained

    (Place an “x” in one or both categories.)

    Sold

81. 4. Provide the dollar volume in thousands and number of loans retained as of December 31, 20XX, and the dollar volume in thousands and number of loans sold over the 12-month period ending December 20XX. For loans with multiple non-traditional characteristics, include them in each applicable category.

    Retained (Number of Loans)

    Retained (Dollar Amount)

    Sold (Number of Loans)

    Sold (Dollar Amount)

82. a. Interest-only Mortgage Loan
83. b. Payment Option ARM
84. c. Reduced Documentation
85. d. Simultaneous Second-lien Loan
86. e. Home Equity Line of Credit
87. f. Covered Loans
88. g. Adjustable Rate Mortgage Loans

89. 5. All Loans (Non-Traditional and Traditional)

    NON-TRADITIONAL, ADJUSTABLE RATE AND MORTGAGE LOAN SURVEY DEFINITIONS

    Definitions

    a.

    Interest-only Mortgage Loan

    A nontraditional mortgage in which, for a specified number of years (e.g., three or five years), the borrower is required to pay only the interest due on the loan, during which time the interest rate may fluctuate or may be fixed. After the interest-only period, the rate may be fixed or fluctuate based on the prescribed index and payments include both principal and interest.

    b.

    Payment Option ARM

    A nontraditional mortgage that allows the borrower to choose from a number of different payment options. For example, each month, the borrower may choose a minimum payment option based on a “start” or introductory interest rate, an interest-only payment option based on the fully indexed interest rate, or a fully amortizing principal and interest payment option based on a 15-year or 30-year loan term, plus any required escrow payments. The minimum payment option can be less than the interest accruing on the loan, resulting in negative amortization. The interest-only option avoids negative amortization but does not provide for principal amortization. After a specified number of years, or if the loan reaches a certain negative amortization cap, the required monthly payment amount is recast to require payments that will fully amortize the outstanding balance over the remaining loan term.

    c.

    Reduced Documentation

    A loan feature that is commonly referred to as “low doc/no doc”, “no income/no asset”, “stated income” or “stated assets.” For mortgage loans with this feature, an institution sets reduced minimal documentation standards to substantiate the borrower's income and assets.

    d.

    Simultaneous Second-lien Loan

    A lending arrangement where either a closed-end second-lien or a home equity line of credit (HELOC) is originated simultaneously with the first lien mortgage loan, typically in lieu of a higher down payment.

    e.

    Home Equity Line of Credit

    An open-end loan, usually recorded as a second mortgage, that permits borrowers to obtain cash advances based on an approved line of credit.

    f.

    Covered Loans

    Covered loan (under Section 4970 of the Financial Code) - a consumer loan in which the original principal balance of the loan does not exceed the most current conforming loan limit for a single-family first mortgage loan established by Fannie Mae and where one of the following conditions are met:

    a) the APR at consummation will exceed by more than 8 percentage points the yield on Treasury securities having comparable maturity periods on the 15^th day of the month immediately preceding the month in which the loan application is received, or

    b) the total points and fees payable by the consumer at or before closing will exceed 6% of the total loan amount.

    g.

    Adjustable Rate Mortgage Loans (ARMS)

    An adjustable rate mortgage loan that has one or more of the following characteristics: (1) low initial payments based on a fixed introductory rate that expires after a short period and then adjusts to a variable index rate plus a margin for the remaining term of the loan; (2) very high or no limits on how much the payment amount or the interest rate may increase (“payment or rate caps”) on reset dates; (3) limited or no documentation of borrower's income; (4) product features likely to result in frequent refinancing to maintain an affordable monthly payment; and/or (5) substantial prepayment penalties and/or prepayment penalties that extend beyond the initial fixed interest rate period. As an example of item (1) above, ARMs known as “2/28” loans feature a fixed rate for two years and then adjust to a variable rate for the remaining 28 years, and the spread between the initial fixed interest rate and the fully indexed interest rate in effect at loan origination typically ranges from 300 to 600 basis points.

    SCHEDULE M

    ADDITIONAL LOAN INFORMATION

90. 1. Please answer the following questions in connection with the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act): (Information regarding the SAFE Act can be found on our website at www.dbo.ca.gov).
91. A. Did you make, arrange or service any residential mortgage loans as defined by the SAFE Act? Yes ​ No ​
92. B. How many mortgage loan originators did you employ as of 12/31/XX for this activity? __________
93. C. Indicate the NMLS Unique Identifier Number: __________
94. 2. Under the authority of your California Finance Lenders license, please indicate which of the following type(s) of loan programs were provided to applicants during the calendar year:

95. A. Consumer first mortgage loans (1-4 units)

    Yes ​

    No ​

96. B. Consumer unsecured loans

    Yes ​

    No ​

97. C. Consumer personal property loans

    Yes ​

    No ​

98. D. Automobiles and other motor vehicles

    Yes ​

    No ​

99. E. Auto title loans

    Yes ​

    No ​

100. F. Affordable Credit-Building Opportunity loans

     Yes ​

     No ​

101. G. Commercial real estate loans

     Yes ​

     No ​

102. H. Commercial unsecured loans

     Yes ​

     No ​

103. I. Commercial business equipment

     Yes ​

     No ​

104. J. Commercial automobiles and other motor vehicles

     Yes ​

     No ​

105. K. Accounts receivable financing

     Yes ​

     No ​

106. L. Other CFLL activity (describe below)

     Yes ​

     No ​

107. 3. The following questions are in connection with the California Foreclosure Reduction Act and the single point of contact requirement in Civil Code Section 2923.7.
108. A. During the calendar year, did you foreclose on 175 or fewer residential real properties containing no more than four dwelling units that are located in California? Yes ​ No ​
109. B. Provide your total number of foreclosures initiated during the calendar year 20XX on residential real properties located in California, containing no more than four dwelling units. __________

110. C. Provide your total number of foreclosures that resulted in the sale of residential real properties located in California, containing no more than four dwelling units, during the calendar year. __________

     SCHEDULE N

     SCHEDULE OF LOAN ACTIVITY AS OF DECEMBER 31, 20XX

     Unsecured

     Personal Property Loans

     Automobiles and Other Motor Vehicles

     Auto Title Loans

     Other Security

     No.

     Amount

     No.

     Amount

     No.

     Amount

     No.

     Amount

     No.

     Amount

111. A. Consumer Loans Serviced:
112. 1. Loans outstanding prior year at 12/31/XX
113. 2. Loans outstanding at year end 12/31/XX
114. 3. Loans with one or more past due payments, which are past due 30 or more days at 12/31/XX
115. 4. For calendar year 20XX provide the following:
116. a. Total loans made
117. b. Number of loans charged one or more late fees
118. c. Total late fees collected
119. d. Total number of repossessions conducted
120. e. Total number of loans reinstated
121. f. Total number of loans collateral redeemed
122. g. Total collateral sales resulting in a deficiency balance
123. h. Total collateral sales resulting in a surplus balance
124. i. Total charge-offs
125. 5. Average contracted term of loan ( in months)

126. B. Schedule of Other Consumer Loans Made (must be completed by any licensee who originated consumer loans not under the California Finance Lenders Law.)

     Total Number of Loans Made

     Total Principal Amount of Other Loans Made

     $

     Provide the name of the agency and your license number that authorizes you to originate other consumer loans:

     ______________________________

127. C. Schedule of Other Commercial Loans Made (must be completed by any licensee who originated commercial loans not under the California Finance Lenders Law.)

     Total Number of Loans Made

     Total Principal Amount of Other Loans Made

     $

     SCHEDULE O (CONFIDENTIAL)

     DEFAULT RATES BY TYPE OF LOAN AS OF DECEMBER 31, 20XX

     Total

     Total

     NUMBER OF LOANS PAST DUE

     PERCENTAGE OF LOANS PAST DUE

     Security Type

     Number of Charge-Offs

     Number of Loans Outstanding

     Current Loan

     1 Payment Past Due

     2 Payments Past Due

     3 or More Payments Past Due

     Current Loan

     1 Payment Past Due

     2 Payments Past Due

     3 or More Payments Past Due

     Consumer Loans Under $2,500

     1.

     Unsecured Loans Personal Property

     2.

     (Household items) Automobiles And

     3.

     Other Vehicles

     4.

     Auto Title Loans

     5.

     Wage Assignment

     6.

     Other Security

     7.

     Totals

     Consumer Loans $2,500 to $4,999

     8.

     Unsecured Loans Personal Property

     9.

     (Household items) Automobiles And

     10.

     Other Vehicles

     11.

     Auto Title Loans

     12.

     Wage Assignment

     13.

     Other Security

     14.

     Totals

     Consumer Loans $5,000 to $9,999

     15.

     Unsecured Loans Personal Property

     16.

     (Household items) Automobiles And

     17.

     Other Vehicles

     18.

     Auto Title Loans

     19.

     Wage Assignment

     20.

     Other Security

     21.

     Totals

     Consumer Loans $10,000 or More

     22.

     Unsecured Loans Personal Property

     23.

     (Household items)

     24.

     Automobiles And Other Vehicles

     25.

     Auto Title Loans

     26.

     Wage Assignment

     27.

     Other Security

     28.

     Totals

     CFL 812

STATE OF CALIFORNIA -- BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY

DEPARTMENT OF BUSINESS OVERSIGHT

INSTRUCTIONS FOR COMPLETING THE 20XX ANNUAL REPORT FOR LENDERS AND BROKERS LICENSED UNDER THE CALIFORNIA FINANCE LENDERS LAW

WHO MUST FILE THE REPORT: Every licensee under the California Finance Lenders Law as of December 31, 20XX must file the annual report. The report must include information on all businesses conducted under the California Finance Lenders license by licensees located in or outside the State of California.

NO BUSINESS OR INACTIVE LICENSES: An annual report must be filed even if no business was conducted under the license(s) in 20XX. If no business was conducted under the license(s) during the calendar year 20XX, complete Schedules A through C-3, Schedule K and Verification section only. Include a statement at the bottom of the Verification section “No business was conducted under the license(s) during the calendar year 20XX.” “No business” means no loans were made, refinanced, or brokered in 20XX, and no loan payments or broker fees were received in 20XX.

WHEN IS THE REPORT DUE/PENALTY FOR FAILURE TO FILE THE ANNUAL REPORT: The annual report is due on or before March 15, 20XX. No extension of the filing date shall be granted. Failure to file the report will result in summary revocation of your license(s). Under Government Code Section 11522, a licensee whose license has been revoked may have to wait a period of not less than one year from the date of revocation before applying for a license.

WHAT IS THE PURPOSE OF THE ANNUAL REPORT: The information reported in the annual report is used to publish the Department of Business Oversight's Annual Report -- Operation of Finance Companies. In addition, each licensee's annual assessment is based on income reported by the licensee as earned from activities conducted under the California Finance Lenders license. The information reported is also used to determine the licensee's compliance with the statutory net worth requirement.

WHERE TO FILE THE REPORT:

DEPARTMENT OF BUSINESS OVERSIGHT

FINANCIAL SERVICES DIVISION

320 WEST FOURTH STREET, SUITE 750

LOS ANGELES, CA 90013

THE ANNUAL REPORT FORM: The information must be prepared in the annual report form prescribed by the Department of Business Oversight in Form CFL 812A (Rev. 11/13)), including Schedule B-1 Balance Sheet and Schedule C-1 Statement of Income and Expenses. Financial statements attached to the report will not be accepted in place of Schedule B-1 and Schedule C-1. ALL AMOUNTS MUST BE ROUNDED TO THE NEAREST WHOLE DOLLAR. Do not add “.00” to represent rounding to the nearest dollar. In addition, do not round items to the nearest thousand or million dollars, or round intermediate calculations. The annual report is electronically scanned and therefore the information must be TYPED in the annual report form, and the ORIGINAL signed copy of the annual report must be filed with the Department of Business Oversight.

COMPLETENESS & ACCURACY: The annual report will be rejected by the Department of Business Oversight and returned to the licensee if the information provided is incomplete or incorrect. All questions and schedules must be completed. If any schedule is inapplicable, indicate “Not Applicable” at the top of the page. Attach a supplemental page(s) if more space is needed. All information provided in the report is subject to verification. Accordingly, due care should be exercised in the completion of the report. The annual assessment is calculated from the information provided in the annual report. If the annual report filed contains incorrect information, it may result in an incorrect annual assessment. Assessment notices will be distributed to licensees on or before September 30, 20XX.

HOW TO READ THE MAILING LABEL: If you received an annual report form from the Department of Business Oversight in the mail, a mailing label is attached at line 1 of Schedule A of the form. The mailing label provides information on your license. Your license number or the mailing number assigned if you possess multiple licenses, and the number of licenses held by you as of December 31, 20XX is shown on the top line of the label.

PERIOD COVERED BY THE REPORT: The reporting period is either (1) January 1, 20XX to December 31, 20XX, or (2) the effective date of licensure in 20XX to December 31, 20XX.

WHICH SCHEDULES MUST BE COMPLETED: The Table of Schedules To Be Completed in the annual report identifies the schedules that must be completed by the type of license(s) held. If your business consists of more than one location, a single consolidated annual report must be submitted. Do not submit a separate annual report for each location.

FAILURE TO COMPLETE THE REQUIRED SCHEDULES WILL RESULT IN THE REJECTION AND RETURN OF THE ANNUAL REPORT TO THE LICENSEE.

SCHEDULE A (GENERAL INFORMATION):

Item 1.

If the Department of Business Oversight's mailing label is attached to the annual report form, item 1 (name and main office address of the licensee) does not need to be completed.

Item 5.

If the annual report includes more than one licensed location, the license number and address of each licensed location must be listed on a separate attachment, marked as Schedule A, Item Number 5.

SCHEDULE B-1 (BALANCE SHEET): This schedule must be prepared on a basis consistent with generally accepted accounting principles. Licensees are required to maintain a net worth of at least $25,000. A licensed lender employing one or more mortgage loan originators must maintain a minimum net worth of at least $250,000, and a licensed broker employing one or more mortgage loan originators must maintain a minimum net worth of at least $50,000. Failure to maintain the required net worth is grounds for administrative action.

SCHEDULE B-2 (ANALYSIS OF LOANS AND RECEIVABLES OUTSTANDING): Record all receivables not subject to the California Finance Lenders license as Other Receivables on lines 7 through 14. Exercise care in classifying the receivables because certain sales contracts, leases, and other receivables may be subject to the California Finance Lenders Law. Flooring and accounts receivable financing are examples of transactions subject to the California Finance Lenders Law. In addition, certain types of leases such as dollar buy out, direct financing, abandonment, and purchase leases may be subject to the California Finance Lenders Law. If so, the receivables must be classified under California Finance Lenders Loan Receivables on lines 1 through 6.

SCHEDULE C-1 (STATEMENT OF INCOME AND EXPENSES) AND SCHEDULE C-2 (INCOME RECEIVED FROM CFLL LENDERS AND BROKERS LOANS): These schedules must be prepared on a basis consistent with generally accepted accounting principles. For reporting purposes, treat 20XX income earned from loans originated under the Personal Property Brokers, Consumer Finance Lenders, and Commercial Finance Lenders laws as Gross Income from CFLL Loans and CFLL Brokered Loans on line 1 of Schedule C-1. Also report only the amount of income earned during the year under the California Finance Lenders license. Loss on loan receivables must be shown as a separate line item on line 4 of Schedule C-1. Do not deduct any loss on loans receivables from the gross income on line 1 of Schedule C-1.

The income reported on lines 1 through 16 of Schedule C-2 is income received under your California Finance Lender license and may include income from loans made under the Personal Property Broker, Consumer Finance Lender, and Commercial Finance Lender Laws. Double-check your calculations. The income received must be accurately reported in the schedules because the amount you report is used to determine the amount of your annual assessment under the California Finance Lenders Law to renew your license(s) for the next year. Your annual assessment is based on the gross income you report on activities conducted under your California Finance Lenders Law license. Income earned under other state or federal lending licenses, activities not requiring a license, or activities conducted under licenses of other government agencies should not be reported on line 1 of Schedule C-1 or on lines 1 through 16 of Schedule C-2.

SCHEDULE C-3 (INCOME FROM OTHER BUSINESS AND SOURCES): Report under All Other Business and Sources, lines 1 through 7, only those revenues not subject to the California Finance Lenders Law. See instructions for Schedule B-2 above for classification of receivables under the California Finance Lenders Law. Any income received from your California Finance Lender license must be reported in Schedule C-2.

SCHEDULE D (SCHEDULE OF BROKERED LOANS): All loans brokered in 20XX under your California Finance Lenders license must be scheduled. Schedule A. Schedule of CFLL Brokered Loans must be completed by a licensee that brokered loans to any lender licensed under the California Finance Lenders Law. For a definition of consumer loans and commercial loans, refer to the instructions for Schedules E, F, and G (Loan Statistics) below.

Line 8(a) -- Residential Mortgage Loans Brokered. From the “Total Consumer Loans Brokered” reported on line 8, indicate on line 8(a) the number of loans brokered, the principal amount of loans and the amount of commissions received on residential mortgage loans.

Section B. Schedule of Other Brokered Loans must be completed by licensees that have brokered loans to any lender not licensed under the California Finance Lenders Law, such as mortgage loans made under a Department of Real Estate license. The name of the regulatory agency and license number that authorizes you to broker these loans must be provided.

SCHEDULES E, F, & G (LOAN STATISTICS): If any loans were made under your California Finance Lenders license during the year 20XX, Schedules E, F, and G must be completed. The loans made in 20XX must be categorized in Schedules E, F and G as either consumer loans or commercial loans as follows:

Note: Authority cited: Sections 22150 and 22159, Financial Code. Reference: Sections 22159, 22160 and 22715, Financial Code.

History

1. New section filed 1-7-2014; operative 1-7-2014 pursuant to Government Code section 11343.4(b)(3) (Register 2014, No. 2). For prior history, see Register 83, No. 16.