CA AB237

Increases the maximum loan amount under the pilot program from $2,500 to $7,500, with loans exceeding $2,500 requiring a minimum term of one year and maximum of five years.

Adjusts debt-to-income ratio limits to 50% of gross monthly income for loans up to $2,500 and 36% for loans exceeding $2,500.

Requires licensees to reduce interest rates on subsequent loans to the same borrower by a minimum of one percentage point, with additional reductions available based on loan term length, capped at four percentage points total.

Mandates licensees perform reasonable background checks on finders and allows the Commissioner of Business Oversight to charge licensees additional fees to cover costs of overseeing finder activities.

Requires the Commissioner to examine both licensees and their associated finders at least once every 24 months and to include finder-specific performance data in annual program reports.