The November 2022 DFPI Bulletin focuses on license renewal, crypto businesses, and veteran resources, 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.

Read ahead for an MLO-focused digest of November’s most important developments affecting your license use.

NMLS license renewals open now

It’s that time of year again! The 2023 NMLS license renewal period began November 1, 2022, and ends at midnight ET on December 31, 2022.

MLOs need to renew their licenses annually by taking continuing education (CE). California licensees who fail to renew by the deadline enter their licenses into a reinstatement period the following year — ending February 28 — during which they need to take Late CE to restore their licensure.

Licensees can avoid this by submitting their CE and application by the NMLS SMART renewal deadline: December 9, 2022. This deadline allows ample time to process your renewal so your mortgage loan origination business continues into 2023 without a hitch.

Though not recommended, the At-Risk-to-Miss renewal deadline is December 16. The Guaranteed to Miss renewal deadline is December 30.

Editor’s note — Haven’t renewed yet? firsttuesday has you covered with a 100% online 8-hour NMLS renewal course. Enroll today to beat the SMART deadline.

DFPI action on crypto businesses

The DFPI is abuzz with activity when it comes to California’s crypto asset space. The Department highlighted four recent actions illustrating its commitment to consumer protection against predatory crypto business practices:

  • a notice to suspend the California Financing Law (CFL) license of SALT Lending LLC following its announcement to pause client withdrawals;
  • a notice to suspend the CFL license of BlockFi LLC also following an announcement to pause client withdrawals;
  • an investigation into the collapse of crypto asset platform FTX; and
  • a desist and refrain order against GMO Global, which allegedly defrauded consumers in a crypto trading platform scheme.

This flurry of actions reflects a volatile and underregulated industry ripe for abuse. Yet as home prices fall, consumers may be tempted to turn to these risky financial products to shield their savings from inflation.

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:

The future of cryptocurrency in real estate transactions

Veteran resources

The U.S. celebrated Veterans Day on November 11, but MLOs can still support servicemembers year-round by connecting them with valuable DFPI resources.

The DFPI offers free educational resources dedicated to protecting California veterans on their Consumer Financial Education for Military and Veterans page, including information on legal protections and assistance programs for homebuyers.

Veteran clients can also download brochures and more resources from the DFPI Information for Military Service page. This includes information on the Servicemembers Civil Relief Act, Military Lending Act and fraud protection.

Your veteran clients are more likely targets for fraudsters than civilians, according to the AARP. This is your call to inform and protect your most vulnerable and deserving homebuyers.

Related article:

CalVet program eclipsed by VA-guaranteed mortgages

That’s a wrap for the November 2022 DFPI Bulletin Digest! Check out the full November Bulletin here. Subscribe to the weekly Quilix newsletter to receive the December 2022 edition in your inbox.