From an email sent by LoanMe this morning:

"As of January 1st, 2016 changes in the California Finance Lenders Law (Senate Bill 197) requires brokers and lenders to be licensed when referring or making loans to California residents."

As we know, many legal trends start in CA and the rest of the states follow their lead. This is just the tip of the iceberg. The little ISO lacking the resources for licensing or those with shady track records will be squeezed out in the next year.