DFPI Bulletin Digest: May 2022

The May 2022 DFPI Bulletin focuses on the latest from Governor Newsom blockchain executive order, consumer law updates and loan forgivenessamong other topics.

Editor’s Note – California Financial Protection and Innovation Department (DFPIformerly the Business Supervision Department) oversees, licenses and regulates a variety of financial institutions, including certain home mortgage originators (MLOs) holding a National Multi-State (or Mortgage) Licensing System and Registry (NMLS) Licence.

Along with the California Department of Real Estate (DRE), the DFPI shares responsibility for overseeing MLOs based on their use of licenses.

Licensees, read on to stay ahead of May 2022 MLO news and events below.

New Executive Order

On May 4, 2022, Governor Gavin Newsom signed an executive order setting transparency and regulatory goals for California’s rise. web3 industry. Web3 companies are those that incorporate decentralized blockchain technology.

Under this new executive order, California will begin processes to:

  • create a regulatory approach to drive responsible innovation while protecting California consumers;
  • assess how to deploy blockchain technology for state and public institutions; and
  • create pathways for research and workforce development to prepare Californians for success in this industry.

The order directs the DFPI and other state agencies to develop a comprehensive regulatory approach to crypto assets coordinated with federal regulations and guidelines, creating consumer protections and cementing California’s status as the premier launching pad for responsible crypto asset companies.

Crypto assets and blockchain technology are exploding. The cryptocurrency alone surpassed a market capitalization of $3 trillion last November, versus $14 billion just five years ago. As of April 22, 2022, late-stage post-money valuations of venture capital-backed blockchain and crypto-asset companies have increased by an average of 91%, to $3.95 billion.

Any questions regarding the executive order can be directed to Belinda Alcala via email at [email protected]

New consumer protection law

On May 4, 2022, Commissioner Cloey Hewlett testified at a joint hearing of the State Senate Banking and Financial Institutions Committee and the Assembly Banking and Finance Committee. Commissioner Hewlett was joined by Chief Deputy Commissioner Chris Shultz, Senior Deputy Commissioner Suzanne Martindale and Deputy Commissioner Christina Tetreault, Head of DFPI’s Office of Financial Technology Innovation (OFTI).

This joint hearing is required as part of the California Consumer Financial Protection Act (CCFPL)from January 1, 2021. The first year of operation allowed to harvest nearly $1 million in restitution for consumers, filing hundreds of additional complaints and using its expanded authority to launch more than 100 investigations.

The DFPI published the 2021 CCFPL Annual Report on March 23, 2022 which summarizes the activities of the DFPI during its first year, including key enforcement actions, consumer complaints data and outreach results.

Civil Service Loan Waiver Webinar

On May 31, 2022, at 12:00 p.m. PT, the DFPI will host a webinar on the Public Service Loan Relief Program (PSLF), eligibility and application process. This is the third webinar in a series of online events developed for DFPI’s statewide Student Borrower Outreach Campaign.

This webinar, in partnership with the Student Borrower Protection Center (SBPC), will include a live Q&A session and is free and open to everyone. Register and submit your Q&A questions on the webinar registration page. Additionally, you can check out previous Student Borrower events on the DFPI YouTube channel.

The deadline for submitting the PSLF waiver form is October 31, 2022. Learn more by visiting the Public Service Loan Forgiveness Program website. Contact the DFPI at [email protected] with any questions, or call (866) 275-2677.

Holden Act reports due

For the 2021 calendar year, MLO license holders must file their Residential Mortgage Report (also known as Holden’s Law Report) not later than June 13, 2022.

Note: Submission deadlines have been updated and you can skip the previous due date of March 31, 2022. Those who did not file their report by March 31, 2022 will not see any action taken against them. against.

Licensees are advised to consult with their internal compliance officers to find out if they are required to file the report. Instructions and reporting forms are available on the DFPI website.

Reports can be emailed and scanned at the latest June 13, 2022 at [email protected]

Escrow reports due

For fiduciary agent license holders whose fiscal year ended on January 31, 2022, annual reports were due May 16, 2022. Licensee may submit reports by email to [email protected] or by mail to:

Sultanna Wan, Senior Financial Institutions Examiner, Escrow Law

Financial Protection and Innovation Department
320 West Fourth Street, Suite 750, Los Angeles, CA 90013

For questions regarding the annual reports, contact Sultanna Wan at (213) 576-7647.

The penalties for failing to produce this report by the due date or to include the required information are $100 per day for the first five days a report is late, and $500 per day thereafter. It can also result in the suspension or revocation of a fiduciary agent’s license, or even trigger an immediate review.

This is the end of the May 2022 DFPI Bulletin. To learn more about the topics discussed here, read the full bulletin on the DFPI website.

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