Getting a CFL (California Financing Law) License is simpler than most private lenders might think. Unlike a California DRE (Department of Real Estate) License, a CFL License requires no testing or experience. Private Lender Link’s CEO, Rocky Butani visited the Geraci Law Firm’s office in July 2023 to interview Dennis Baranowski, Esq. to understand the general process of obtaining a CFL License. Watch the video or read the provided transcript below.
ROCKY BUTANI:
For balance sheet lenders that are not located in California and decide they want to start funding loans in California, they’re obviously going to have to get the CFL license. What’s the process for that? How long does it take and how much does it cost?
DENNIS BARANOWSKI:
The process for it is really, it’s applying with the DFPI. And they look at, not only the entity itself, they’re going to look at the people behind it, so whoever has the financial stake in it or a controlling interest in the company. And so there’s an application that you go through and you have to provide information on each of those stakeholders as well as controllers of the licensee. Your regular background check, fingerprints, credit, that type of thing. And then there’s a minimum net worth requirement. But generally speaking, like I said, it’s going to be that application, information about the individuals, the background check, minimum net worth, and then posting a bond. But there’s no testing requirements. There’s no experience requirements like you would have to do to get a DRE license.
ROCKY BUTANI:
Do you know approximately how long it takes on average to get the CFL license?
DENNIS BARANOWSKI:
It seems like some of them can take six to nine months, but a lot of that is not necessarily processing time, I think it’s the pre-time to get a proper application together to submit it. Because if we’re going to submit something on behalf of a client, we definitely want to make sure it’s right and do the best that we can, that there’s not a lot of back and forth. We want to make sure that okay, let’s submit it and get this approved the first time through, and so we don’t have to worry about a lot of back and forth with a regulator to get that license for the client.
Read or watch another part of the interview for more insights: DRE vs CFL