What does having a Consumer Finance Loan License allow a company to do regarding portfolio loans?

Having a Consumer Finance Loan License allows a company to offer greater rates than typically found in the market with portfolio loans. This license gives lenders more flexibility to structure their loan products according to their business models and objectives.

Portfolio loans are typically held by the lender instead of being sold on the secondary market. As a result, lenders with this license can charge higher rates if they choose to cover more risk or provide unique loan terms that might not be available in traditional lending environments. This flexibility can lead to more customized lending products that can accommodate borrowers who might not fit the standard criteria set by conventional mortgages.

In contrast, other options, such as offering lower rates or fixed-rate loans only, do not necessarily apply to the broader advantages provided by the Consumer Finance Loan License. Requiring fewer qualifications could also be a misinterpretation since the license primarily enables lenders to set their own terms and rates rather than simplifying qualification requirements.