Legal Question in Credit and Debt Law in California

Very likely you will be drawn into the mess.

Very likely your friend can't borrow money from the bank himself, because he got bad credit, which he got by breaking his promises to pay money to people. You're next.

Possibly you could be liable as a conspirator to defraud the lender or you could be held liable as being involved in a partnership or joint venture with your friend to defraud or misrepresent facts. I am sure a lawyer can find some legal ground to make you a party to a lawsuit against your friend if he doesn't pay. There must be a reason why your friend does not have the money go into his account. You do not say why you are doing that for your friend but you may get sued and have to explain in a deposition or court the reason for having the funds go into your account and you may end up being held liable for the debt. That will cost you money to hire a lawyer even if you are determined not liable at trial. You might also be involved in a criminal case if your friend is doing something illegal and you are helping him do it should the government file criminal charges. Why get involved and why a real friend would put you at risk?