The January 2022 DFPI Bulletin focuses on the proposed 2022-2023 DFPI budget and the California Mortgage Relief program, among other topics.

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.

Licensees, stay in-the-know on January 2022’s MLO news and events below.

The 2022-2023 proposed DFPI Budget

On January 10, 2021, Governor Newsom presented the proposed state budget for the DFPI. This budget provides them with the necessary resources to continue their important work under the California Consumer Financial Protection Law (CCFPL), while providing additional funding for the implementation of new laws and increased workload.

The proposed budget will also help in addressing the dramatic spike in mortgage loan originator applications, providing additional resources to handle increased consumer complaints related to identity theft and helping to better manage reports related to the financial abuse of elders and dependent persons.

The overall proposed DFPI budget can be summarized by two figures: $157 million and 813 positions. This is an increase of $7.6 million and 40 positions compared to last year. This budget includes:

  • $10 million for Student Borrower Outreach;
  • $4.8 million to restore pandemic reductions;
  • $2.7 million to continue CCFPL & Debt Collector Implementation; and
  • $4 million for Budget Change Proposals related to workload and new laws.


California Mortgage Relief Program

Following approval from the U.S. Treasury, the California Mortgage Relief Program is now open and available. The program is run by the CalHFA Homeowner Relief Corporation (CalHRC), a special-purpose affiliate of the California Housing Finance Agency (CalHFA).

California homeowners can now apply for a grant to pay back missed mortgage payments or reverse mortgage arrearages during the COVID-19 pandemic. Information on eligibility requirements and application instructions are available at

This relief program will cover past due mortgage payments in full as a one-time grant — up to a maximum of $80,000 per household — with a direct payment to the homeowners’ mortgage servicer. Most importantly, the program is free and the funds do not require repayment. Mortgage servicers need to be enrolled in the program for California homeowners to be eligible for funding. As such, the DFPI asks all licensees to sign up.

To participate in the Program, simply send an email to to begin the necessary paperwork with the CalHRC. Additional questions can be submitted to CalHFA servicer liaison Bryan Courtney at

CFL Annual Reports

All DFPI California Financing Law (CFL) licensees are required to submit an annual report on or before March 15, 2022, regardless of if the licensee had no business activity in the calendar year 2021. Licensees are strongly recommended by the Department to start gathering the data now to ensure they can timely file their 2021 Annual Report.

The CFL annual report is required and failure to submit the annual report by the due date will result in penalties.

The form and instructions for submitting the annual report are available on the DFPI website. Annual Reports must be submitted electronically through the DFPI portal account. Users may also sign in or register for a portal account on the DFPI Self Service Portal.

If you have questions about your portal account, please contact the Account Administrator (Albert Mercado) at (213) 220-5140 or email

For questions about the content of the Report or clarification on the instructions, please email or call (866) 275-2677.

Escrow Reports Due

For escrow agent licensees whose fiscal year ended on September 30, 2021, annual reports were due January 13, 2022. Licensee may submit their reports by email to or mail to:

Sultanna Wan, Senior Financial Institutions Examiner, Escrow Law
Department of Financial Protection and Innovation
320 West Fourth Street, Suite 750, Los Angeles, CA 90013

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

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

2021 Escrow Annual Liability Report

For all escrow agents licensed prior to January 1, 2022, an Annual Liability Report is to be submitted to the DFPI Commissioner. The Annual Liability Report form is now available on DFPI’s website here. The deadline to electronically submit is February 15, 2022.

Failure to submit the Annual Liability Report by the deadline may result in monetary penalties. If you have any questions, please email

New Financial Services Manager for “New Covered Persons” Program

On January 3, 2022, DeCarlton “Cory” Kincy transferred to the DFPI Consumer Financial Protection Division as the new Financial Institutions Manager for the Supervision and Registration of New Covered Persons program. This position was created under the CCFPL and will help the DFPI build a new registration and examination program to oversee industries previously unregulated by the DFPI.

That’s a wrap on the January 2022 DFPI Bulletin. Find out more about the topics mentioned here by reading the full bulletin on the DFPI website.