The May 2022 DFPI Bulletin focuses on a Governor Newsom’s latest blockchain executive order, consumer protection law updates and loan forgiveness, 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, read on to stay ahead of May 2022’s 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 burgeoning web3 industry. Web3 companies are those that incorporate decentralized blockchain technology.

Under this new executive order, California will begin the processes of:

  • creating a regulatory approach to spur responsible innovation while protecting California consumers;
  • assessing how to deploy blockchain technology for state and public institutions; and
  • building research and workforce development pathways 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 guidance, creating consumer protections and solidifying California’s status as the premiere launchpad for responsible crypto asset companies.

Crypto assets and blockchain technology is exploding. Cryptocurrency alone surpassed a $3 trillion market cap last November, up from $14 billion just five years prior. As of April 22, 2022, late-stage post-money valuations for venture capital-backed blockchain and crypto asset companies have increased on average 91 percent, to $3.95 billion.

Any questions regarding the executive order may be relayed to Belinda Alcala by email at

New Consumer Protection Law

On May 4, 2022, Commissioner Cloey Hewlett testified to a joint hearing of the State Senate Banking and Financial Institutions Committee and 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 the DFPI Office of Financial Technology Innovation (OFTI).

This joint hearing is required as part of the California Consumer Financial Protection Law (CCFPL), effective as of January 1, 2021. The first year of operation yielded the collection of close to $1 million in restitution for consumers, fielding hundreds of additional complaints and using its expanded authority to launch more than 100 investigations.

The DFPI released the 2021 CCFPL Annual Report on March 23, 2022 which summarizes the DFPI’s activities during its first year, including major enforcement actions, consumer complaint data and outreach results.

Public Service Loan Forgiveness Waiver Webinar

On May 31, 2022, at 12 p.m. PT, the DFPI will host a webinar about the Public Service Loan Forgiveness (PSLF) program, eligibility, and application process. This is the third webinar in a series of online events developed for the DFPI’s statewide student borrower outreach campaign.

This webinar, in partnership with the Student Borrower Protection Center (SBPC), will feature a live Q&A session and is free and open to all. Register and submit your Q&A questions on the Webinar Registration Page. In addition, you can review previous student borrower events on the DFPI’s YouTube channel.

The PSLF waiver form submission deadline is October 31, 2022. Learn more by visiting the Public Service Loan Forgiveness Program Website. Contact the DFPI at with questions, or call (866) 275-2677.

Holden Act Reports Due

For the 2021 calendar year, MLO licensees must file their Residential Mortgage Loan Report (also known as Holden Act Report) no later than June 13, 2022.

Please note: the submission filing deadlines have been updated, and you may disregard the previous March 31, 2022, due date. Those who had not submitted their report before March 31, 2022, will have no action taken against them.

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

Reports may be emailed and scanned on or before June 13, 2022 to

Escrow Reports Due

For escrow agent licensees whose fiscal year ended on January 31, 2022, annual reports were due May 16, 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 regarding 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 trigger an immediate examination.

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