Consumer loans: residential real property rental obligations.

The California Financing Law (CFL) generally regulates consumer loan lending practices by finance lenders, brokers, and program administrators. The CFL makes a willful violation of its provisions a crime. This bill would prohibit finance lenders, brokers, and program administrators from making a consumer loan if a purpose of the loan is to pay for any obligation under an agreement to rent residential real property, including, but not limited to, a rent split loan agreement, as specified. By expanding the scope of a crime under the CFL, this bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.