Who is specifically covered by CFLL requirements?

The California Finance Lenders Law (CFLL) specifically covers brokers and originators within the loan industry, making this the correct choice. This regulation was designed to ensure that entities engaged in the business of making loans or acting as loan brokers comply with specific licensing and operational requirements. The primary goal is to protect consumers by ensuring that those who lend money or facilitate loans adhere to statutory guidelines.

Brokers and originators are key players in the loan market, and under the CFLL, they must be licensed in California to legally operate. This regulation helps maintain standards in the lending industry, promotes fair lending practices, and enhances accountability among lenders.

Consequently, other groups such as only banks and credit unions, all business owners, or only large corporations operating in California do not exclusively fall under the CFLL requirements. Banks and credit unions have their own separate regulatory requirements applicable to their banking activities that are different from those under CFLL. Additionally, general business owners or large corporations aren’t necessarily involved in the lending business, which is the focal point of the CFLL regulation.