The December 2022 DFPI Bulletin focuses on new state laws for 2023, license renewals and escrow reports.
Editor’s note — The California Department of Financial Protection and Innovation (DFPI, formerly the Department of Business Oversight) supervises, licenses, and regulates a variety of financial institutions, including some real estate mortgage loan originators (MLOs) holding a Nationwide Multistate (or Mortgage) Licensing System and Registry (NMLS) license. Alongside the California Department of Real Estate (DRE), the DFPI shares the responsibility for overseeing MLOs depending on their license use.
Read ahead for firsttuesday’s MLO-focused digest of November’s most important developments affecting your license use.
New MLO laws for 2023
The DFPI has published a list of new California laws for 2023 affecting licensees. The 2022 Chaptered Legislation Highlights include a brief description of the law, plus a link to the bill text. All are set to go into effect January 1, 2023 (unless otherwise noted).
Among the highlights, Assembly Bill (AB) 1837 makes it harder for large corporate investors to elbow out individual homebuyers at a trustee’s sale. Building on 2020’s Senate Bill (SB) 1079, the new bill closes loopholes favorable to corporate Real Estate Owned (REO) property bidders at auction.
The bill also requires the winning bidder at a foreclosure sale to maintain the property as affordable for low-income households (whether as a sale or rental) for at least 30 years. Click ahead for an in-depth breakdown of this new foreclosure law.
Related article:
New laws revise eligibility requirements for foreclosure bidders
NMLS license renewal
The Conference of State Bank Supervisors (CSBS) reminds MLOs to renew their licenses annually via the NMLS. Licensees need to renew annually by December 31 to maintain their licensure for the following year.
Not sure how to renew? Visit the NMLS Annual Renewal Information page for step-by-step instructions.
Editor’s note — It’s not too late to renew your NMLS license for 2023. Visit firsttuesday.us to order your 8-Hour On-Time Continuing Education and complete before the deadline.
DFPI action on crypto accounts and businesses
The DFPI’s focus on crypto asset accounts and business intensified in 2022, handing down several high-profile actions against the backdrop of a crypto crash.
Between November and December 2022, the Department clamped down on unlicensed and allegedly fraudulent businesses, including:
- MyConstant, which is not licensed to operate in California;
- SALT Lending and BlockFi Lending, which announced pausing client withdrawals; and
- NovaTech and Fundsz, part of a larger High Yield Investment Program (HYIP) crackdown.
Crypto assets are enjoying wider adoption among financial service providers, and real estate professionals are fielding more financial questions from consumers with crypto savings. Stay ahead of the questions — continue to our rundown of growing use-cases for digital currency and blockchain technology in real estate services.
Related article:
Escrow reports due
The Department reminds escrow agents to submit annual reports within 105 days of the close of their fiscal year. As an example: agents whose fiscal year ended on August 31, 2022 need to submit by December 14, 2022.
An agent’s CPA may email the report to ESCAnnualReportFiling@dfpi.ca.gov using a secure and encrypted delivery system, including a secured dropbox.
Note that the penalty for failing to file by the deadline or include required information stands at $100 per day for the first 5 days a report is late, and $500 after that point. It may also trigger a license suspension, revocation and even examination.
That’s a wrap for the December 2022 DFPI Bulletin Digest! Check out the full December Bulletin, and subscribe to the weekly Quilix newsletter to receive the first 2023 edition of the DFPI Bulletin Digest in your inbox.
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