The July 2022 DFPI Bulletin focuses on small business financing disclosures, proposed rules on commercial financial products, and the 2022-2023 assessment rates for financial institutions, 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 of July 2022’s MLO news and events below.

Extension of Commercial Financing Disclosure Regulations

On June 9, 2022, the California Office of Administrative Law (OAL) approved the DFPI’s proposed commercial financing disclosure regulations. The regulations extend disclosure protections to California small businesses when those businesses seek commercial financing.

The disclosures will take effect on December 9, 2022. They aim to provide California small businesses a deeper understanding of the costs and benefits of commercial financing offers. Armed with these disclosures, small businesses will be better able to compare different offers to find the best financing solution for their needs. The final regulations and Final Statement of Reasons are posted to the DFPI website.

The DFPI’s work on these disclosures traces back to the passage of SB 1235 in 2018, which mandates commercial financing providers provide disclosures to small businesses. The bill requires providers to disclose:

  • the total funds provided;
  • total dollar cost of financing;
  • term or estimated term;
  • method, frequency and amount of payments;
  • a description of prepayment penalties; and
  • the total cost of financing as an annualized rate.

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Rules Proposed on Commercial Financial Products and Services

The DFPI has filed a Notice of Proposed Action to invite public comments on proposed rulemaking under the Consumer Financial Protection Law (CCFPL). The proposed regulations implement, interpret, or make specific provisions of the Financial Code relating to commercial financing to small businesses, nonprofits, and family farms.

Submit your comments via email to with a copy to Please include “PRO 02-21” in the subject line.

Alternatively, comments may be mailed to:

Department of Financial Protection and Innovation
Attn: Sandra Navarro
2101 Arena Boulevard
Sacramento, California 95834

The Text of Proposed Regulations and the Initial Statement of Reasons are available on the DFPI website.

The 45-day public comment period ends on August 8, 2022.

Public Comment Period on Oversight of Crypto Asset-Related Financial Services

While public interest in cryptocurrencies has exploded since the pandemic, regulation remains thin. Regarding oversight of crypto-asset related financial products and services, the DFPI is currently seeking comments on:

  • regulatory priorities;
  • CCFPL regulation and supervision; and
  • market-monitoring functions.

For any rulemaking recommendations, commenters are invited to provide a description of any economic impact of the recommendation for California businesses and consumers.

Governor Gavin Newsom issued Executive Order N-9-22 last May to create a transparent regulatory and business environment for web3 companies, to foster responsible innovation, bolster California’s economy, and most importantly: protect consumers. As part of this strategy, the DFPI seeks input in developing guidance and regulatory clarity and supervision in offering crypto asset-related financial products and services in California.

The DFPI has posted topics and questions to help commenters generate feedback. Find the formal Invitation for Comments on the DFPI website.

Comments will be accepted until August 5, 2022, and may be submitted via email to Include “Invitation for Comments – Crypto Asset-Related Financial Products and Services ” in the subject line.

Comments may also be mailed to:

Department of Financial Protection and Innovation, Legal Division
Attn: Sandra Navarro, Regulations Coordinator
2101 Arena Boulevard
Sacramento, CA 95834

2022-23 Assessment Rates for Financial Institutions

On June 30, 2022, the invoice for the 2022-23 annual assessment were emailed to banks, credit unions and money transmitters. Licensees that have not received their invoices should notify the Accounts Receivable Unit at as soon as possible.

Invoices are payable on or before August 1, 2022 with more time allowed for payments made via electronic funds transfers (EFTs). EFT payments are due by August 8, 2022.

For commercial banks, foreign banks, and trust companies, the base rate was set at $1.39 per $1,000 of assets, a $0.05 decrease from last year’s rate of $1.44.

For credit unions, the 2021-22 assessment rate was set at $1.01 per $1,000 of assets, the same as last year’s rate.

For industrial banks, the base rate was set at $1.39 per $1,000 of assets, a decrease of $0.05 from last year’s rate of $1.44.

Lastly, for money transmitters, the 2021-22 assessment rate was set at $0.014 per $1,000 received for transmission by a licensee in calendar year 2021, a decrease of $0.006 from last year’s rate. The 2021-22 assessment rate for issuers of payment instruments and stored value was set at $0.63 per $1,000 of total payment instruments and stored value sold by a licensee.

For assessment calculation questions, refer to “How to Calculate Your Assessment” or contact Patrick Carroll at (415) 263-8559 or Questions regarding assessment payment processing should be directed to the Accounts Receivable Unit at

Escrow Advisory Committee Openings

As of September 2022, there will be three openings on the Escrow Advisory Committee.

The Committee is comprised of eleven members, including the Commissioner (or their designee).

Appointed members serve for a period of two years without compensation or reimbursement for expenses. The Committee meets quarterly at the Department’s office. The next meeting is tentatively scheduled for Wednesday September 7, 2022.

The current committee vacancies are representatives from:

  • a small-size escrow company;
  • an escrow company that has a different type of business ownership; and
  • a CPA who has escrow agent clients.

Managers or corporate officers of independent escrow companies are eligible to serve. Examples of a different business ownership include companies owned by title companies or brokers.

Licensed escrow agents and qualifying CPAs who meet one of the above criteria are encouraged to apply by sending a letter of qualifications and/or resume to Paul Liang at, or via mail to:

Department of Financial Protection and Innovation
320 West 4th Street, Suite 750
Los Angeles, California 90013

The deadline for submissions is July 29, 2022. Direct any questions to or (213) 576-7535.

Increased Access to Responsible Small Dollar Loans and Non-Profits 2021 Report

The DFPI has published the 2021 Annual Report of the Pilot Program for Increased Access to Responsible Small Dollar Loans (RSDL). The program is designed to provide an alternative to payday loans and other more expensive forms of consumer credit. This report contains detailed information gathered earlier this year from participating lenders.

The Pilot Program aims to increase the availability of responsible small dollar installment loans of at least $300 but less than $2,500. In 2018, the maximum loan amount rose to $7,500.

Additionally, the DFPI has posted the 2021 Annual Report for Nonprofit Entities Providing Zero-Interest Loans. Senate Bill 896 was enacted in 2015 to encourage nonprofit organizations (exempt organizations) to facilitate zero-interest, low-cost loans. In part, the small dollar loans are intended to allow consumers to establish, build and improve their credit scores.

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