CA AB3207

Expands the definition of "broker" under the California Financing Law to include persons who transmit confidential borrower data, make referrals, participate in loan negotiations, prepare loan documents, communicate lending decisions, or charge fees for loan application services in connection with finance lender loans.

Requires licensed brokers to obtain prospective borrowers' express consent before performing broker activities and mandates clear disclosure statements to borrowers about referrals, including broker identity, compensation structure, and complaint procedures.

Prohibits finance lenders from compensating unlicensed persons for broker activities unless specific conditions are met, and prohibits passing through referral fees to borrowers; establishes requirements for unlicensed referral agents including obtaining borrower consent and providing written compensation disclosures.

Requires licensed brokers compensating unlicensed referral persons to develop and enforce policies preventing violations of the California Financing Law and maintain records of all unlicensed persons compensated for referrals.

Mandates the Commissioner of Business Oversight examine each finance lender licensee at least once every 48 months for compliance and provide written findings to licensees' principals, officers, or directors; exempts federally recognized Indian tribes and their business entities from licensing requirements.