The November 2021 DFPI Bulletin focuses on NMLS license renewals, and the newly launched DFPI webpage for cryptocurrency and digital assets, 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 November 2021’s MLO news and events below.
NMLS license renewal deadline
The Conference of State Bank Supervisors (CSBS) encourages mortgage loan originators to renew their licenses in the NMLS by November 30, 2021, to avoid processing delays.
Over 239,000 MLOs and companies are licensed to conduct business, accounting for more than 976,000 state licenses to be renewed. The number of state licensed MLOs eligible for renewal is nearly 40% higher than it was this time last year, while the number of companies eligible for renewal is up 14% compared to the same time last year.
Federally registered MLOs and institutions must also renew their registrations via NMLS by Dec. 31. More information for federal registrants is available on the NMLS Federal Registry Resources page.
Editor’s note — Haven’t renewed your license yet? There’s still time! Enroll in firsttuesday’s 8-Hour On-Time NMLS Renewal Course to get started.
New DFPI cryptocurrency and digital assets webpage
The DFPI has created a webpage in response to the rising interest in cryptocurrency, so consumers have the information they need to navigate the risks associated with cryptocurrencies and other digital assets.
With Californians of all age falling victim to cryptocurrency-related fraud schemes created by scammers, the DFPI wants to ensure that consumers know where to find help when they need it. This page will also serve as the homepage for the DFPI’s cryptocurrency consumer alerts and provide key updates from the Office of Financial Technology and Innovation (OFTI). Check out the DFPI’s new Cryptocurrency webpage here.
Escrow Reports Due
For escrow agent licensees whose fiscal year ended on July 31, 2021, annual reports are due November 15, 2021. Submit reports by email to ESCAnnualReportFiling@dfpi.ca.gov 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, call Sultanna Wan at (213) 576-7647.
The penalties for failure to file the annual 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. Failure to file a report or to include any required information may also result in the suspension or revocation of an escrow agent’s license and/or prompt an immediate examination.
Revised Proposed Commercial Financing Regulations
On September 11, 2020, the Department began implementing Senate Bill 1235, which mandates new disclosure requirements for commercial lending in California. Proposed rules have been circulated and amended several times since then.
On October 12, 2021, the Commissioner proposed additional modifications to the text and will receive public comments through November 22,2021. A copy of the proposed modifications is being made available to the public.
Send your comments by email to regulations@dfpi.ca.gov with a copy to charles.carriere@dfpi.ca.gov and jesse.mattson@dfpi.ca.gov.
Keep in mind, the proposed modifications are not yet effective and will not be effective until approved by the Office of Administrative Law and filed with the Secretary of State.
Newly appointed DFPI Commissioner
In September, Governor Newsom announced the appointment of Clothilde “Cloey” Hewlett as the next Commissioner of the DFPI.
Ms. Hewlett is responsible for overseeing an organization that serves more than 550,000 alumni of the University of California, Berkeley as current Executive Director and Chief Legal Officer for the Cal Alumni Association.
Prior to this position, Ms. Hewlett served as Undersecretary of the State and Consumer Services Agency (before it became the Business, Consumer Services and Housing Agency) and Interim Director of the Department of General Services.
New Manager for Student Loan Servicing Division
Devin Bragg was chosen as Financial Institutions Manager for Student Loan Servicing in the Consumer Financial Protection Division on November 2, 2021,. He will lead the DFPI’s licensing and oversight of student loan servicers.
Devin formerly started as a banking examiner for the Department more than 15 years ago and was a Financial Institutions Manager and Portfolio Manager in the Banking Division.
That’s a wrap on the November 2021 DFPI Bulletin! Find out more about the topics mentioned here by reading the full bulletin on the DFPI website.
