California Code of Regulations
Title 10 - Investment
Chapter 3 - Commissioner of Financial Protection and Innovation
Subchapter 6 - California Financing Law
Article 14 - Pilot Program for Increased Access to Responsible Small Dollar Loans
Subarticle 4 - Reports
Section 1606 - Annual Report: Form

(a) Each licensee shall file an annual report as set forth in subsection (b) of this section, with the Commissioner, on or before the 15th of March, providing information concerning the business and operations conducted by the licensee under the Increased Access to Responsible Small Dollar Loans program, and information pertaining to each finder and the licensee's relationship and business arrangements with each finder, during the preceding calendar year. The annual report required under this section is in addition to the annual report of the total business operations of a licensee required under Section 22159 of the Financial Code.

(b) The individual annual report required under Sections 22367 and 22375, subdivision (c), of the Financial Code shall be submitted on the following form:

INSTRUCTIONS FOR COMPLETING THE 20XX ANNUAL REPORT FOR LICENSEES PARTICIPATING IN THE PILOT PROGRAM FOR INCREASED ACCESS TO RESPONSIBLE SMALL DOLLAR LOANS

WHO MUST FILE THE REPORT: Every licensee under the California Financing Law approved by the Commissioner of Financial Protection and Innovation (Commissioner) to participate in the Pilot Program for Increased Access to Responsible Small Dollar Loans (RSDL pilot program) shall file the annual report. The annual report shall include information on all business conducted under the RSDL pilot program.

NO BUSINESS OR INACTIVE LICENSES: An annual report shall be filed even if no business was conducted under the license in 20XX. If no business was conducted under the RSDL pilot program during the calendar year 20XX, complete question numbers 1 through 10 and the Verification section only. Include a statement at the bottom of the Verification section that "No business was conducted under the RSDL pilot program during the calendar year 20XX." "No business" means no loans were made under the RSDL pilot program in 20XX.

FORMER PILOT PROGRAM FOR AFFORDABLE CREDIT-BUILDING OPPORTUNITIES: Licensees that were approved by the Commissioner to participate in the former Pilot Program for Affordable Credit-Building Opportunities must report information on all business conducted under the pilot program during the calendar year ended December 31, 2013. The information shall be filed on the annual report form in Section 1606.1 of Title 10 of the California Code of Regulations.

WHEN IS THE REPORT DUE/ PENALTY FOR FAILURE TO FILE THE REPORT: The report is due on or before March 15, 20XX. No extension of the filing date shall be granted. Failure to file the report may result in summary revocation of the California Financing Law license(s).

WHAT IS THE PURPOSE OF THE ANNUAL REPORT: The information reported in the annual report is used to publish the Department of Financial Protection and Innovation's Annual Report - Operation of Finance Companies Participating in the Increased Access to Responsible Small Dollar Loans Program. The annual consolidated report shall be posted on the Commissioner's Internet Web site at www.dfpi.ca.gov by July 1, 2015, and annually on or before July 1, 2017, to July 1, 2026, inclusive, as required under Financial Code Section 22380, subdivision (a).

WHERE TO FILE THE REPORT: The annual report form is no longer available in paper form. Annual report forms are available at the Department's self-service portal, https://docqnet.dfpi.ca.gov. THE ANNUAL REPORT MUST BE COMPLETED AND FILED ELECTRONICALLY, through the Department of Financial Protection and Innovation's self-service portal, https://docqnet.dfpi.ca.gov.

THE ANNUAL REPORT FORM: The information must be submitted on the annual report form prescribed by the Department of Financial Protection and Innovation [Form CFL 1606 (08/21)]. ALL AMOUNTS MUST BE ROUNDED TO THE NEAREST WHOLE DOLLAR. Do not add ".00" to represent rounding to the nearest dollar. In addition, do not round items to the nearest thousand or million dollars, or round intermediate calculations.

COMPLETENESS & ACCURACY: The annual report shall be rejected by the Department of Financial Protection and Innovation, with a status indicating the licensee has not filed its annual report, if the information provided is incomplete or incorrect. All questions and schedules must be completed. If any schedule is inapplicable, indicate "Not Applicable" at the top of the page. All information provided in the annual report is subject to verification. Accordingly, due care should be exercised in the completion of the report.

PERIOD COVERED BY THE REPORT: The reporting period is either (1) January 1, 20XX to December 31, 20XX, or (2) the effective date of approval to participate in the RSDL pilot program in 20XX to December 31, 20XX.

SCHEDULES A THROUGH J

If any loans were made under the RSDL pilot program during the year 20XX, Schedules A through I must be completed. The following schedules provide space to report activities associated with seven finders. If no loans were made in 20XX, state "None" on the applicable schedules.

SCHEDULE A (SCHEDULE OF APPLICATIONS RECEIVED AND LOANS MADE BY SIZE AND TERM): All loan applications received and loans made must be scheduled in Section A. Multiple loans made to the same borrower should be reported as separate loans transactions. Do not include loans that were not made under the RSDL pilot program. Report percentages to the nearest whole percentage (e.g. report .457 as 46, not 45.7 or 46%). Report loans in Schedule A based on the terms of the loan at the time the loan was made. Report the distribution of loans per borrower in Schedule A-5, for those borrowers who obtained more than one program loan.

SCHEDULE B (SCHEDULE OF LOANS BY INCOME DISTRIBUTION OF CENSUS TRACTS AND BORROWERS WITH BANK ACCOUNTS): Schedule the number of loans by the income distribution of census tract of the borrowers at the time of the loan origination. Use the following federal Community Reinvestment Act (12 U.S.C. 2901) and the Federal Financial Institutions Examination Council:

If the Median Family Income % is < 50%, then the Income Level is Low.

If the Median Family Income % is >= 50% and < 80%, then the Income Level is Moderate.

If the Median Family Income % is >= 80% and < 120%, then the Income Level is Middle.

If the Median Family Income % is >= 120%, then the Income Level is Upper.

If the Median Family Income % is 0%, then the Income Level is Not Known.

Information on income distribution of census tract may be found at http://www.ffiec.gov/ and http://www.ffiec.gov/census/default.aspx

Report in Schedule B-2 information on the number of borrowers who, at the time of the loan application, self-reported that they had or did not have a bank account, self-reported that they had a bank account and used check-cashing services, and self-reported that they had a bank account and used payday loan services.

SCHEDULE C (SCHEDULE OF LATE FEES CHARGED DURING THE YEAR BY SIZE OF THE LOAN):

Report the number of loans in which late fees were assessed in Schedule C-1 and the number of late fees assessed on the loans in Schedule C-2, the total dollar amount of late fees assessed on the loans in Schedule C-3, the average number of late fees assessed per loan in Schedule C-4, and the percentage of loans that were assessed late fees in Schedule C-5.

SCHEDULE D (SCHEDULE OF LOANS MADE BY LOAN PURPOSE):

Report the primary purpose of the loans based on borrower responses at the time of the loan applications.

SCHEDULE E (SCHEDULE OF LOANS BY RATE CHARGES): Report loans in Schedules E-1, E-2, E-3 and E-4 based on annual percentage rate (APR) calculated in accordance with Federal Reserve Board Regulation Z. Do not report in these schedules the agreed upon contract rate of the loan.

SCHEDULE F (SCHEDULE OF LOAN PERFORMANCE): Report loan performance based on delinquencies in the account history, and not on the loan's current status. The information on the percentage of delinquent borrowers must be reported in the schedules by length of the delinquency and principal loan amount.

SCHEDULE G (SCHEDULE OF LOANS MADE BY LANGUAGE AND CREDIT EDUCATION PROGRAM OR SEMINAR OFFERED): Report under the appropriate language column, the number of loans negotiated orally or in writing in that language. The languages are English, Spanish, Chinese, Tagalog, Vietnamese, Korean, and Other. In column A, report the number of borrowers who were offered a credit education program or seminar in the same language in which the loan was negotiated. For example, if five loans were negotiated in English and all five borrowers were offered a credit education program or seminar in English, report "5" under the column labeled "English" and "5" in column A. If known, report in column B the number of borrowers who attended the offered credit education program or seminar.

SCHEDULE H (SCHEDULE OF FINDERS): Report all finders utilized during the calendar year 20XX.

(a) The borrower has repaid at least 60 percent of the outstanding principal remaining on his or her loan.

(b) The borrower is current on his or her outstanding loan.

(c) The licensee underwrites the new loan in accordance with paragraph (4) of subdivision (g) of Financial Code Section 22370.

(d) If the loan proceeds of both the original loan and the refinance loan are to be used for personal, family, or household purposes, the borrower has not previously refinanced the outstanding loan more than once.

Loans made under the former Pilot Program for Affordable Credit-Building Opportunities and subsequently refinanced in compliance with the requirements for refinance under the RSDL pilot program, must be included in Schedule I of this annual report.

In Schedule I-2, the total number of borrowers who refinanced once, twice, or more than two times should equal the total number of borrowers who received one or more refinance loans in Schedule I-1.

SCHEDULE J (RECOMMENDATIONS FOR IMPROVING THE RSDL PILOT PROGRAM):

Provide any comments or information to help improve the program.

COMPANIES WITH MULTIPLE LOCATIONS: Companies with multiple locations shall prepare one annual report consolidating the information of all locations into the report.

ANNUAL REPORT FORM SUBMISSION:

The annual report form is no longer available in paper form. Annual report forms for calendar year 2017, and following, are available at the Department's self-service portal, https://docqnet.dfpi.ca.gov. THE ANNUAL REPORT MUST BE COMPLETED AND FILED ELECTRONICALLY, through the Department of Financial Protection and Innovation's self-service portal, https://docqnet.dfpi.ca.gov.

VERIFICATION: The Verification section must be completed in accordance with the instructions, and signed, by the licensed individual, a general partner if the licensee is a partnership, or a corporate officer if the licensee is a corporation. The Verification must include an original signature on the annual report filed with the Department of Financial Protection and Innovation. The Verification must be downloaded, printed, and signed by the required individual. The signed Verification page must be submitted, as a separate attachment, to the annual report completed and submitted electronically to the Department of Financial Protection and Innovation. Incomplete Verification or a missing signature in the Verification shall result in a status indicating that the licensee has NOT FILED its annual report due for that year.

FEE: No fee is required to file the Annual Report.

PUBLIC INSPECTION: The Department of Financial Protection and Innovation shall prepare an annual consolidated report that aggregates the information received from each annual report submitted by licensees for the designated year. The annual consolidated report shall be available to the public.

FOR ASSISTANCE AND INFORMATION REGARDING THE ANNUAL REPORT: Contact the Department of Financial Protection and Innovation at 213-576-7690.

CFL 1606 (08/21)

ANNUAL REPORT FOR CALIFORNIA FINANCING LAW LICENSEES ENGAGED IN BUSINESS UNDER THE PILOT PROGRAM FOR INCREASED ACCESS TO RESPONSIBLE SMALL DOLLAR LOANS FOR THE YEAR ENDED DECEMBER 31, 20XX

THIS REPORT IS REQUIRED UNDER SECTIONS 22367 AND 22375 OF THE FINANCIAL CODE.

(PLEASE READ THE ATTACHED INSTRUCTIONS CAREFULLY BEFORE COMPLETING THE ANNUAL REPORT.)