AHEAD AND CALL TO ORDER THE
AUGUST THIRTIETH OF BANKING
COMMITTEE HEARING --
TODAY WE HAVE A ONE AND A BILL
WHICH WE ARE.
A HEARING AND THAT IS ASSEMBLY
BILL TWO THREE SEVEN AM AUTHOR
US ONLY MEMBER GONZALEZ FLETCHER.
WE DO HAVE YEAH YES WE HAVE A
QUORUM SO WE'LL GO AHEAD AND
CALL THE ROLL. ONE TWO THREE
FOUR FIVE SIX LOOKS.
LIKE THIS [inaudible]
ISN'T [inaudible]
CREATING.
HE WON'T CARE [inaudible]
GEN.
ACOSTA HERE BURTON [inaudible]
CERVANTES.
CHOI HERE GABRIEL [inaudible]
GONZALEZ FLETCHER [inaudible]
GRAYSON [inaudible]
STONE [inaudible]
WEBER.
ALRIGHT WE WILL GO AHEAD AND
START -- AS
WE HAVE A MOTION.
AND THE SECOND.
THANK YOU AYE MADAM CHAIR
MEMBERS AB TWO THREE SEVEN WOULD
EXPAND ACCESS TO SAFE CONSUMER
LOANS BY RAISING THE UPPER LIMIT
OF LOANS AVAILABLE UNDER THE
PILOT PROGRAM. TWO SEVENTY FIVE
HUNDRED DOLLARS AYE SOME OF THE
MAIN PROTECTIONS INCLUDING THE
PILOT PROGRAM THAT DO NOT EXIST
UNDER CFL INCLUDE INTEREST RATES
CAPPED AT 36%.
LOANS MUST BE UNSECURED LOANS
WAS COMPLETE NDERWRITING TO
ENSURE BORROWERS HAVE THE
ABILITY TO REPAY LENDERS MUST
REPORT LOANS TO CREDIT AGENCIES
IN NO PREMIUM PAY PENALTIES FOR
BORROWERS.
EXPANDING THE UPPER LIMIT A
PILOT PROGRAM TO SEVENTY FIVE
HUNDRED WOULD PROVIDE RELIEF TO
CONSUMERS BY MAKING LOANS OVER
TWENTY FIVE HUNDRED AVAILABLE
UNDER THE PILOT PROGRAM.
AB TWO THREE SEVEN CLICK THE
COST RECOVERY MEASURE THAT
ALLOWS DB A CHARGE LICENSEES AN
ADDITIONAL FEE FOR THE PURPOSES
OF RECOVERING THE COST OF
CONDUCTING FINDER EXAMINATIONS I
RESPECTFULLY ASK FOR MY ABOUT.
THANK YOU I'M.
ANY AND FOLKS IN SUPPORT OF THE
BILL.
CHRIS ROSE ON BEHALF OF THE
SILICON VALLEY LEADERSHIP GROUP
AN INSECT IN SUPPORT
[inaudible]
THANK YOU [inaudible]
ANYBODY ELSE [inaudible]
ANY OPPOSITION.
MADAM CHAIR MEMBERS.
MY CAN USING HERE ON BEHALF OF
OPPORTUNE.
PUTIN IS THE PREMIER SMALL
DOLLAR RESPONSE WAS MODEL UNDER
IN THE IN THE STATE --
AND AND WE WE UNDERSTAND WHAT
THE AUTHOR IS ATTEMPTING TO DO
HERE WE JUST HAVE A FUNDAMENTAL
DISAGREEMENT ABOUT WHETHER THIS
IS THE RIGHT WAY TO DO IT.
I THOUGHT I WOULD JUST JUST TRY
TO BE REALLY BRIEF AND JUST TALK
ABOUT A COUPLE THINGS THAT WE
KNOW IN A COUPLE THINGS THAT WE
DON'T KNOW --
THIS BILL WAS HERE BEFORE THIS
BODY -- JUST
ABOUT A YEAR AGO --
AND THERE WERE LOTS OF QUESTIONS
AND CONCERNS LEGITIMATELY SO --
THIS BILL SEEKS.
TO TAKE A PARTICULAR LENDERS
MODEL.
AND PROVIDE IT WITH --
SPECIALIZED TREATMENT THIS IS A
SINGLE COMPANY BILL AND I DON'T
BELIEVE THAT THAT'S A DEBATABLE
POINT --
THIS COMMITTEE WILL NOT HAVE ANY
INPUT.
ON WHAT THIS BILL SHOULD LOOK
LIKE WE DON'T THINK THAT'S
NECESSARILY THE BEST WAY TO DO
POLICY.
THE VAST MAJORITY OF THE LOANS
THAT ARE MADE BY FINDERS
CURRENTLY.
ARE UNDER THE TWENTY FIVE
HUNDRED DOLLAR CAPSULE WE DON'T
BELIEVE THERE IS ANY COMPELLING
REASON.
TRIPLE THE SIZE OF THE LOANS
THAT CAN BE DONE UNDER IT.
NO DATA FROM THE REGULATOR
APARTMENT BUSINESS OVERSIGHTS.
WE JUST THAT THERE'S SOME
CHALLENGING PIECES RELATED TO
LOANS THAT ARE ORIGINATED BY
FINDERS ONLY JUST PROVIDE A
COUPLE OF THEM.
DB A DATA SAYS THAT ONLY SIX
PRINTS 16% OF THE LOANS.
THAT ARE MADE OF BY FINDERS
UNDER THE PILOT ARE DONE IN LOW
TO MODERATE INCOME COMMUNITIES.
AS OPPOSED 263% A LOANS
ORIGINATED BY NON FINDERS --
THE POINT OF THE PILOT WAS TO DO --
TO GET ACCESS TO APPROPRIATE
CAPITAL IN UNDERSERVED
COMMUNITIES AND WE DON'T WANNA
THINK THIS DATA SUGGEST THAT
THAT'S NOT HAPPENING WITH
FINDERS.
THE DATA SUGGEST THAT COULD
SCORE BUILDING THAT HAPPENS --
OUT WITH FINDER LOANS IS
DRAMATICALLY LESS THAN THE
CRITICAL THE CREDIBILITY THAT
HAPPENS OUT WITH LOANS MADE BY
NON ORIGINATED ONCE.
SO THAT'S WHAT WE KNOW WHAT WE
DON'T KNOW IS I'M.
YOU KNOW WHAT'S WITH THESE
FINDERS ARE INTERESTING AND
COLLECT A COLLECTION OF OF FOLKS
THEY INCLUDE PAYDAY LENDERS
CHECK CAPTURES.
A FURNITURE STORE OF A GOLD A
GOLD BUYING PLACE THAT SO THAT'S
ALWAYS KIND OF CONCERN JUST AS
WELL BECAUSE WE DON'T KNOW
EXACTLY WHAT'S GOING ON THAT WE
DON'T KNOW.
IF PILOT LOANS ARE BEING USED AS
YOU KNOW THE BAIT IN A BAIT AND
SWITCH WE DON'T KNOW IF THIS
CROSS SELLING GOING ON WE WE
DON'T KNOW WHAT THIS IS ENABLING.
AND THIS HASN'T REALLY BEEN
LOOKED AT AND NOW WE'RE GONNA
TRIPLE THE SIZE THE LOANS THAT
HAPPEN HERE --
AT THIS POINT I THINK THAT'S
SUFFICIENT WE'VE WE'VE
ESTABLISHED.
OUR CONCERNS --
WE WISH OF THIS BILL WAS IN THAT
THERE WAS A MUCH MORE ROBUST.
THOUGHTFUL A COMPREHENSIVE
APPROACH TO THE PROBLEM OF
ACCESS TO CAPITAL AND PREDATORY
LENDING.
THANK YOU.
ANY ADDITIONAL WITNESSES IN
OPPOSITION MADAM CHAIR MEMBER
SCOTT GOVERNOR BEHALF CALIFORNIA
FINANCIAL SERVICES ASSOCIATION --
WE'D LIKE TO SEE THAT PILOT
PROGRAM LOOKED AT HOLISTICALLY
SEE WHAT'S WORKING WHAT ISN'T
WORKING BEFORE WE EXPAND THAT I
HAVE MEMBERS WHO ARE CAPPED AT
36% ALSO.
THERE'S SOME PROVISIONS WITHIN
THE PILOT PROGRAM WHICH MAKE IT
APPEALING.
WE'D LIKE TO LOOK AT THOSE --
TO PERHAPS TWEAK THE PROGRAM
BEFORE WE EXPAND IT.
I RYAN FLANAGAN I'M I ON BEHALF
OF LANDMARK FINANCIAL SERVICES
IN OPPOSITION.
JOHN NOR WITH ON BEHALF OF THE
CONSUMER CREDIT INDUSTRY
ASSOCIATION ALSO POST THANK YOU --
MICHAEL SIR GOES ON BEHALF OF
CENTRAL VALLEY LATINO MAYORS
ELECTED OFFICIALS COALITION IN
OPPOSITION ALSO LATIN BUSINESS
ASSOCIATION [inaudible]
THANK YOU.
SEEN NEITHER BUZZ OPPOSITION I'M
MEMBERS ANY QUESTIONS OR
COMMENTS [inaudible]
ALRIGHT.
CNN WE WILL GO AHEAD AND TAKE A
VOTE THIS BILL DOES HAVE A MORE --
RECOMMENDATION OF SORRY I MEAN I
TO CLOSE.
HE WON'T TAKE A VOTE I'M GOOD
WITH THAT TOO I JUST I JUST DO
WANT TO POINT OUT ONE THING
BECAUSE IT WAS SAID. TO TWO
THINGS REALLY THE OPPOSITION ARE
PEOPLE WHO I AM IT'S FUNNY THAT
THEY CALL IT A SYMBOL.
A COMPANY.
BILL BECAUSE THEY'RE ACTUALLY
ALL THE COMPETITION WAS UP HERE
IN OPPOSITION TO THE SINGLE
COMPANY BILL BECAUSE THEY ALSO
OPERATE THE SPACE BUT WHAT THIS
DOES IS ACTUALLY PROVIDES A CAP.
IF THE INDUSTRY ITSELF MEMBERS
OF THIS PILOT PROGRAM WILL IT
HERE TO THIS 36% CAP THAT WE'VE
BEEN TRYING TO GET ALL YEAR.
IN THIS COMMITTEE FOR SOME TYPE
OF LOAN.
YES THEY CAN USE FINDERS CAN USE
FINDERS WE DON'T HAVE TO IN FACT --
THAT THE FOLKS WHO WHO TESTIFIED
AGAINST IT DON'T USE FIGHTERS
BUT THEY ALSO DO TRIPLE DIGIT
LOANS.
THESE FINDERS SO HAVE TO BE WERE
ENTITIES ARE REGISTERED WITH THE
D. BO.
AB IT TO IT LICENSED AND THEY
HAVE TO ADHERE TO SPECIFIC
ACTIVITY DISTURBING FACTUAL
PREPRINT MATERIALS THEY CAN'T
PROVIDE COUNSELOR VII'S --
THEY CAN --
IT YOU KNOW THERE'S BACKGROUND
CHECKS WRITTEN INTO THE BILL SO
CLEARLY WE'VE ALSO LOOKED ON THE
DB A WEBSITE AND CAN'T FIND ANY
COMPLAINTS AGAIN FIGHT AGAINST
FINDERS.
SO TO SUGGEST SOMEHOW THIS IS A
BAD MODEL JUST BECAUSE WE WE
JUST DON'T KNOW THEY'RE NOT
REGISTERED BROKERS WILL THAT'S
HOW WE CAN KEEP THIS UNDER 36%.
AND WE CAN PROVIDE IMMIGRATION
SERVICES AND FUNERALS IN THINGS
THAT COST MORE THAN TWENTY FIVE
HUNDRED DOLLARS AT A REASONABLE
RATE FOR PEOPLE WHO DON'T HAVE A
CREDIT SCORE BUT HAVE A GOOD JOB.
AND WILL PAY THAT BACK SO I
RESPECT LAST NIGHT.
THANK YOU WITHOUT YOU GO AHEAD
AND CALL.
AT THE FOR THE THE MOTION IS DUE
PASSED TO ASSEMBLY
APPROPRIATIONS.
FOR EIGHTY EIGHT TO THIRTY SEVEN
LAMONT AYE LAMONT AYE CHEN
[inaudible]
ACOSTA [inaudible]
I COSTA I BURKE [inaudible]
CERVANTES [inaudible]
CHOI PRIME CHOI AYE GABRIEL.
GABRIEL I GONZALEZ FLETCHER.
GONZALEZ FLETCHER AYE GRAYSON
[inaudible]
STONE [inaudible]
WEBER [inaudible]
WEBER I ALRIGHT THAT WE HAVE AS
SIX THE VOTE IS SIX AND ZERO IT
DOES AND MOVE FORWARD AND WE
WILL LEAVE THE ROLE OPEN AND FOR
ANOTHER MINUTE OR SO BUT I WILL
CLOSE IT
ABSENT MEMBERS [inaudible]
CHEN [inaudible]
BURKE [inaudible]
CERVANTES.
CERVANTES NOT VOTING
[inaudible]
GRAYSON [inaudible]
STONE
.
CALL THE ROLL FOR ABSENT MEMBERS
[inaudible]
CHEN [inaudible]
GRAYSON.
GRAYSON AYE STONE
.
AT PLEASE CALL THE ABSENT
MEMBERS [inaudible]
CHEN [inaudible]
STONE.
STONE AYE GREAT.
AND WITH THAT THE BILL I'M IS
OUT. EIGHT ZERO AND WE WILL GO
AHEAD AND ARE JUNE OUR BANKING
COMMITTEE HEARING