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The July 2020 DBO Bulletin focuses on safety compliance for coronavirus (COVID-19), the Responsible Small Dollar Loans Pilot Program and assessment rates.

The California Department of Business Oversight (DBO) supervises, licenses and regulates a variety of financial institutions, including some real estate mortgage loan originators (MLO’s) holding a Nationwide Multistate (or Mortgage) Licensing System & Registry (NMLS) license. Alongside the California Department of Real Estate (DRE), the DBO shares the responsibility for overseeing MLOs depending on their license use.

Continue reading for a rundown of July’s most important DBO happenings.

Compliance with face covering guidance

The DBO is reminding licensees to make sure all employees and customers are complying with the latest guidance on face masks from Governor Newsom and the California Department of Public Health (CDPH) in regards to COVID-19.

Anyone who refuses to wear masks and those who do not adhere to the exemptions outlined by the CDPH will not be allowed to enter any places of business, including real estate offices, banks credit unions. If you have any questions about face-mask guidance and enforcement, email Ask.DBO@dba.ca.gov.

New report on Pilot Program for Responsible Small Dollar Loans

The DBO recently published the 2019 Annual Report on the Responsible Small Dollar Loans (RSDL) Pilot Program. It contains detailed information from the RSDL Pilot Program, including data on loan size, annual percentage rates, delinquencies, loan terms and borrower income.

The DBO states lenders approved more than 320,000 loans last year, which represents a 40% increase since 2017 and 8% increase since 2018. The total principal amount of loans created last year was more than $428 million, representing a 30% increase since 2018.

The Pilot Program was created to increase accessibility of responsibility small dollar installment loans ranging from $300 to $7,500. The program provides an alternative to payday loans and other forms of consumer credit.

No assessment rate increases planned

In annual assessment invoices mailed to financial institutions, the DBO approved no assessment rate increases for fiscal year 2020-21. Assessments are due July 30 and payments made via electronic funds transfer (EFT) by August 6.

The DBO also released assessment rates for different financial institutions, including trust companies and money transmitters. The base rate is set at:

  • $1.39 per $1,000 of assets for trust companies;
  • $0.02 per $1,000 received for money transmissions by a licensee; and
  • $0.63 per $1,000 of total payment instruments and stored value sold by a licensed money transmitter.

Any questions regarding assessment payment processing should be directed to AccountingAR@dbo.ca.gov.

That’s a wrap for the July 2020 DBO Bulletin! Don’t miss next month’s update and make sure to subscribe to the first tuesday Newsletter to get the latest real estate news and education straight to your inbox every week.

As always, you can read the full DBO Bulletin on their website.