Who is exempt from licensing if making loans only to their employees?

The correct answer is based on the specific exemptions outlined in California mortgage lending laws. An employee pension plan is exempt from licensing requirements if it is making loans exclusively to its employees. This exemption is rooted in the understanding that employee pension plans are not traditional lenders but rather financial arrangements designed to provide benefits to employees, which can include loaning funds.

In contrast, entities such as banks, credit unions, and independent loan agents are typically required to be licensed because they engage in lending activities that are a fundamental part of their business operations. They serve the general public rather than being strictly limited to making loans to their own employees. Therefore, the unique relationship between an employee pension plan and its employees sets it apart as an entity that does not need a licensing requirement when conducting such limited lending activities.