Bill > AB1091

This bill amends existing California Financial Code sections and adds new ones to regulate finance and mortgage lenders. It clarifies that certain entities, such as banks, credit unions, and licensed pawnbrokers, are exempt from specific lending regulations, and it defines a "community advantage lender" as an entity authorized by the U.S. Small Business Administration to provide community advantage loans. The bill also prohibits lenders from making false or misleading statements to borrowers about loan terms, engaging in deceptive advertising, or concealing material information about transactions. A significant addition is the authorization for the commissioner (likely the Commissioner of Financial Protection and Innovation) to issue citations and impose administrative fines of up to $2,500 for violations of lending laws, with these citations and fines potentially serving as an alternative to other disciplinary actions, provided they are not reported as disciplinary actions. However, the commissioner can still issue orders to cease and desist or suspend operations for repeated or severe violations, and these actions are separate from the citation and fine process. The bill also allows for court enforcement of these fines and orders.