Consumer loans.

Existing law, the California Finance Lenders Law, prohibits acting as a finance lender without a license from the Commissioner of Business Oversight and defines a "finance lender" as a person in the business of making consumer or commercial loans. Existing law defines a "consumer loan" as a loan, secured or unsecured, the proceeds of which are to be used primarily for person, family, or household purposes. Under these provisions, a licensee is generally prohibited from taking a deed of trust, mortgage, or lien upon real property as security for a consumer loan unless the loan is for a bona fide principal amount of $5,000 or more. Existing law provides that this provision, among others that…