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California enacts mortgage law on co-borrowing with divorces

The legislation will require certain home mortgage loans originated on or after Jan. 1, 2027 to include provisions allowing any existing borrowers to purchase another borrower’s property interest.

California enacts bill on assessing license fees in deferred deposit transactions

Fees will be determined by the proportion of a licensee’s total dollar amount of deferred deposit transactions relative to the total amount made by all licensees.

Court upholds California’s crypto kiosk transaction limit

The Superior Court for the State of California dismissed a lawsuit challenging the California Digital Financial Asset Law’s (DFAL) $1,000 daily transaction limit.

California AG settles with crypto company

According to the settlement, the company failed to allow customers to withdraw cryptocurrency from accounts and failed to disclose certain aspects of its trading and order handling procedures.

DFPI proposes amendments to the California DCLA

Among other things, the amendments would clarify annual reporting requirements under the Debt Collection Licensing Act.

California enacts new consumer protections on disclosures and marketing

Amendments to the Consumers Legal Remedies Act will require clear disclosures on mailed solicitations and prohibit deceptive marketing practices, among other things.

California DFPI releases Annual Report of Activity

The report highlights investigations, public actions, and consumer outreach efforts under the California Consumer Financial Protection Law.

CPPA releases latest draft of automated decision-making technology regulation

Among other things, the regulations would require a pre-use notice for consumers and risk assessments for businesses using such technology.

FTC, DFPI win MSJ against a fraudulent mortgage relief operation

The court ordered the defendants to pay approximately $16 million in restitution and $3 million in civil penalties.

California DFPI proposes new regulations under the Debt Collection Licensing Act

The proposed rule defines key terms in the DCLA and requires debt collector licensees to file an annual report with the DFPI.

SEC, DFPI charge unregistered crypto platform

The company agreed to pay a $1.5M penalty to the DFPI on behalf of 51 U.S. jurisdictions, mirroring a similar settlement with the SEC.

DFPI fines online platform for omitting convenience fee disclosures

The consent order resolved alleged violations of the California Consumer Financial Protection Law (CCFPL).

Federal court grants DFPI motion for summary judgment on commercial financing disclosure requirements

The court found that the California regulator’s disclosure requirements were lawful under the First Amendment and were not preempted by federal law.

California enacts “state of emergency” mortgage servicing rule

The rule requires servicers to provide additional records when transferring a mortgage secured by a property within a proclaimed emergency zone.

District Court grants motion for summary judgment to DFPI in commercial financing disclosure case

In their complaint, the plaintiffs argued that the regulations violated the First Amendment and were preempted by TILA.

CFPB comments on DFPI licensing provisions, income-based advances

The CFPB stressed the importance of regulatory consistency of consumer financial products and services across federal and state law.

DFPI shares trends in consumer crypto complaints

DFPI also shared tips on how consumers can protect themselves against scams, noting that “if it seems too good to be true, it probably is.”

DFPI issues desist and refrain order against investment firm

The California Division of Financial Protection and Innovation alleges the firm made false representations and material omissions to investors.

DFPI announces enforcement actions for unlicensed debt collection activity

The California regulator found four debt collectors in violation of the Debt Collection Licensing Act and California Consumer Financial Protection Law.

California enacts requirements for digital asset businesses

New legislation establishes a licensing requirement for digital asset businesses and regulations for crypto kiosks.

California enacts two privacy bills

The new legislation amends the California Consumer Privacy Act of 2018 and the California Privacy Rights Act (CPRA) of 2020.

California enacts new data broker regulations

Among other things, the California Privacy Protection Agency is authorized to create a streamlined method for consumers to delete their collected information.

California extends commercial financing cost disclosure requirement

Covered providers offering commercial loans must continue to disclose the total cost of financing expressed as an annualized rate indefinitely.

DFPI examines whether some payment services are exempt from MTA

The California Department of Financial Protection and Innovation recently released a new opinion letter covering aspects of the Money Transmission Act.

DFPI examines whether some payment services are exempt from MTA

The California Department of Financial Protection and Innovation recently released a new opinion letter covering aspects of the Money Transmission Act.

DFPI says escrow trust accounts are not stored value under MTA

The California Department of Financial Protection and Innovation recently released a new opinion letter covering aspects of the California Money Transmission Act (MTA) and the Escrow Act.

DFPI clarifies licensing provisions for several state laws

The California Department of Financial Protection and Innovation filed a notice of proposed rulemaking with comments due on May 17.

DFPI issues more proposed changes to Student Loan Servicing Act

The SLA provides for the licensure, regulation, and oversight of student loan servicers by the California Department of Financial Protection and Innovation.

DFPI modifies CCFPL proposal

Comments on the proposed modifications related to commercial financial products and services are due March 15.

DFPI settles with student loan debt relief company

The settlement is part of the DFPI’s continued crackdown on student loan debt relief companies found to have violated California consumer protection laws.

California reminds licensees of fiduciary duty requirements

Licensees who violate their fiduciary duties may face disciplinary action against their real estate license and/or MLO endorsement and may also expose themselves to civil liability.

DFPI modifies Student Loan Servicing Act proposal

The changes provide for the licensure, regulation, and oversight of student loan servicers by the California agency.

DFPI orders online platform to cease offering crypto-related products

Certain peer-to-peer lending services and interest-bearing accounts were found to violate state law and cannot be offered in California.

DFPI issues reminder to debt collection licensing applicants

Starting January 1, 2023, the California agency will begin approving applications under the Debt Collection Licensing Act.

APPROVED CEO Tim Lange to discuss the role of regtech solutions in compliance management programs

The panel discussion on Wednesday, Dec. 7 is part of the Innovations in Lending, Alternative Financing, Fintech & Private Credit Summit 2022.

DFPI issues notices to suspend two crypto lending companies

On November 18, the California Department of Financial Protection and Innovation (DFPI) announced an order suspending a cryptocurrency lender’s California license for 30 days pending DFPI’s investigation. The suspension follows the DFPI’s notice to suspend issued on November 11, which was prompted by the cryprocurrency lender’s November 10 announcement that it would limit platform activity, including pausing client withdrawals. DFPI noted that the cryptocurreny…

California DFPI concludes MTA licensure not required for crypto exchange

Transactions on the company’s platform will involve the use of the company’s tokenized version of the U.S. dollar.

California amends certain debt collector licensing provisions

The new legislation amends various provisions of the Debt Collection Licensing Act and takes effect Jan. 1, 2023.

Upcoming deadline: CFL license annual assessment due by Oct. 31

California Financing Law licensees must pay their annual assessments to the Department of Financial Protection and Innovation by the end of the month.

California updates mortgage licensing requirements

The new bill was signed by the California governor on September 23 and the changes go into effective on January 1, 2023.

DFPI proposal would consider ISAs as student loans

Proposed rulemaking would adopt new regulations and amend current regulations implementing the Student Loan Servicing Act.

California broadens DFPI commissioner’s enforcement authority

A new bill broadens unlawful practices oversight and enforcement power over any person currently engaging, or having engaged in the past, in unlicensed activity.

California issues remote work guidance to CFL licensees

Remote work is permitted if licensee take certain actions, including the protection of consumers’ personal information.

DFPI enters into settlement with unlicensed point-of-sale lender

The Florida-based point-of-sale lender allegedly engaged in finance lending in California without obtaining a license.

DFPI issues proposal on debt collection licensing

The newest NPRM invites comments related to the scope, annual report, and document retention requirements under the Debt Collection Licensing Act.

DFPI concludes MTA licensure not required for donations to NPOs

A new opinion letter examines whether donations to nonprofit organizations are exempt from the California Money Transmission Act.

DFPI seeks to regulate commercial financial products and services under the CCFPL

The California Department of Financial Protection and Innovation issued a notice of proposed rulemaking with written comments due by Aug. 8.

DFPI says debt collection licenses “unavoidably delayed”

The FBI informed California Department of Financial Protection and Innovation that new changes are needed to state agency protocols for requesting federal background checks.

DFPI amends requirements for increased access to RSDL program

Amendments to regulations under the California Financing Law were related to a pilot program for increased access to responsible small-dollar loans.

California reinstates single commercial loan licensing exemption under the CFL

A new bill amends provisions relating to certain financial institutions, including California Financing Law, Escrow Agent, and Money Transmitter licensees.

Upcoming deadline: California Holden Act report deadline extended to June 13

The California residential mortgage loan report, also known as the California Holden Act report, is typically due by March 31 each year.

DFPI concludes MTA licensure not required for digital asset trading platform

A new opinion letter examines whether a registered money services business requires licensure under the California Money Transmission Act.

DFPI addresses MTA licensing requirements

New opinion letters cover aspects of the California Money Transmission Act related to a digital currency trading platform and the referral of customers to financial institutions.

DFPI reminds licensees of March 15 CFL annual report filing deadline

DFPI also warned licensees that the commissioner may suspend or revoke a licensee’s license if an annual report is not submitted by the deadline.

Upcoming deadlines: CFL and CRMLA license reports

March reporting deadlines are quickly approaching for California Financing Law and California Residential Mortgage Lending Act licensees.

DFPI addresses several MTA licensing exemptions

Two new opinion letters cover aspects of the California Money Transmission Act related to the purchase and sale of digital assets and agent of payee rules.

DFPI reminds licensees about submitting annual reports

All California Financing Law licensees are required to submit their annual reports by March 15, even if the licensee had no business activity during the 2021 calendar year.

DFPI acknowledges challenges in obtaining a NMLS account

DFPI is “working cooperatively with the NMLS team to be able to verify those that have attempted to apply” in compliance with the Dec. 31, 2021 deadline.

DFPI adopts debt collector license application and requirements

Among other things, the regulations set forth procedures for filing a license application through NMLS and license surrender.

California reduces CFL license fingerprint fee for non-residents

The DFPI updated its CFL background check guidance to reduce the processing fee that must accompany an FBI cardstock fingerprint card.

DFPI extends NMLS transition for CFL licensees to March 15, 2022

All California Financing Law licensees not yet on NMLS must establish an account in NMLS and submit their information on or before the new deadline.

DFPI reminds debt collectors and buyers of Dec. 31 application deadline

Debt collectors that miss the deadline will be required to wait for the issuance of a license before operating in California.

10 things to know: Transitioning CFL licenses to NMLS

The transition process can be time-consuming for California Financing Law licensees, especially those new to NMLS.

DFPI proposes additional changes to definitions under Debt Collection Licensing Act

Among other things, the proposed modifications amend the definitions of “branch office” and “debt collector.”

DFPI issues proposed rulemaking under CCFPL

The CCFPL provides DFPI with the authority to require companies that provide financial products and services to California consumers to register with the agency.

DFPI reminds CFL licensees of December 31 transition deadline

Licensees not currently on NMLS must establish an account in the system and transfer information to DFPI through NMLS on or before the deadline.

DFPI addresses several MTA licensing exemptions

The new opinion letters cover aspects of the California Money Transmission Act related to virtual currency and agent of payee rules.

Checkpoint: The NMLS company account creation process

We provide insights into common account creation hurdles that companies face as thousands of California Financing Law licensees are transitioning to NMLS.

DFPI addresses MTA licensure requirements in new letters

The opinion letters cover aspects of the California MTA related to bitcoin ATMs and kiosks and the Agent of Payee exemption.

Upcoming deadlines: California and New Jersey license annual assessments

First up is California, with Department of Financial Protection and Innovation invoices for California Financing Law licensees due in full by October 31, 2021.

CA governor signs legislation on money transmission website requirements

Licensees must provide a toll-free telephone number to contact for customer service issues and to receive live customer assistance.

California debt collection license requirement [Webcast Archive]

APPROVED COO Tim Lange and Buckley LLP Partner Katy Ryan teamed up to break down the act’s requirements, specifically discussing who’s covered by the act, exemptions from licensure, and next steps for industry and regulators.

DFPI issues mortgage servicer requirements

Mortgage servicers licensed in California must provide information to DFPI describing the actions they are taking to help homeowners avoid foreclosure.

DFPI: Debt collection licensing applications due before Jan. 1

On September 1, the California DFPI announced that all debt collectors operating in California can apply to be licensed.

DFPI issues second Debt Collection Licensing Act proposed rulemaking

The act requires a person engaging in the business of debt collecting in the state to be licensed and provides for the regulation and oversight of debt collectors by DFPI.

DFPI addresses MTA licensing exemptions

Several new opinion letters cover aspects of the California Money Transmission Act related to virtual currency and agent of payee rules.

DFPI’s CFL final regulations take effect Oct. 1

The regulations, among other things, amend existing licensing rules to transition all licensees under the CFL to registration through NMLS.

DFPI grants license to ISA servicer

The agreement reflects DFPI’s decision to “treat these private financing products as student loans” for purposes of the California Student Loan Servicing Act (SLSA).

DFPI proposes small-dollar lending pilot

The Pilot Program for Increased Access to Responsible Small Dollar Loans is administered by DFPI and established under the California Financing Law.

DFPI to start accepting debt collector licensing applications on Sept. 1

NMLS published an announcement reminding California debt collectors that all persons must apply for a license by Dec. 31, 2021.

Upcoming deadlines: Electronic surety bond conversion

Over the past year, California, Kentucky, New Hampshire, and Oklahoma joined a majority of states in requiring that new applicants for certain licenses submit electronic surety bonds via NMLS in lieu of paper bonds.

DFPI addresses cryptocurrency MTA licensing exemptions

A new opinion letter covers aspects of the California Money Transmission Act related to certain cryptocurrency activities.

Transition period opens for CFL licensees not currently on NMLS

According to an announcement posted on the DFPI’s website, transitioning is voluntary until related proposed amendments to the CFL regulations are adopted. However, it is anticipated that the transition deadline will remain Dec. 31, 2021.

CFL license transition to NMLS [Webcast Archive]

In this webcast, our panel discussed what lenders and brokers that hold a CFL license off of NMLS can expect with the upcoming transition to the system.

DFPI issues NPRM on debt collector licensing requirements

The California Department of Financial Protection and Innovation’s notice specifies that comments on the proposed modifications are due July 12.

APPROVED Checkpoint: Fingerprinting for CFL license applications

The California Department of Financial Protection and Innovation released background check guidance applicable to the key individuals of California Financing Law licensees and license applicants.

California updates NMLS checklists for CFL license

The Department of Financial Protection and Innovation now expects all companies to apply for the CFL license electronically via NMLS.

DFPI issues proposal on debt collector licensing applications

The notice of proposed rulemaking outlines new requirements for debt collectors seeking to obtain a license to operate in the California.

DFPI addresses several MTA licensing exemptions

The new opinion letters addressed virtual currency, agent of payee rules, and transactions in which recipients are paid before a company is reimbursed.

California Department of Real Estate reissues FAQs regarding licensing process

The FAQs respond to questions regarding, among other things, licensing and examination processes of the Department during Covid-19.

DFPI: Certain bitcoin ATMs/kiosks not subject to MTA licensure

An opinion letter explains that the sale and purchase of bitcoin through ATMs/kiosks in third-party retail locations are not subject to licensure because the sale and purchase of bitcoin from the company’s own inventory through a kiosk does not meet California’s definition of “money transmission.”

DFPI launches debt collection investigation

California’s Department of Financial Protection and Innovation announced the issuance of subpoenas to a dozen debt collection companies as part of its investigation into consumer complaints regarding alleged UDAAP practices.

DFPI: Certain Bitcoin ATMs not subject to MTA licensure

California’s Department of Financial Protection and Innovation released opinion letters covering aspects of the Money Transmission Act related to Bitcoin ATMs.

DFPI addresses MTA licensing in new letter

The redacted opinion letter covered aspects of the Money Transmission Act related to the registered clearing house and payment processing service exemptions.

California enacts the Debt Collection Licensing Act

The Act requires a person engaging in the business of debt collecting in the state to be licensed and provides for the regulation and oversight of debt collectors by the DFPI.

California DBO now Department of Financial Protection and Innovation

The governor signed AB 107, an Assembly Budget Committee bill, which changes the name of the Department of Business Oversight to the Department of Financial Protection and Innovation (DFPI).

California’s new consumer financial protection law

The California Consumer Financial Protection Law changes the name of the Department of Business Oversight and expands UDAAP and enforcement authority.

California addresses MTA licensing exemptions

The California Department of Business Oversight (CDBO) released two new opinion letters covering aspects of the California Money Transmission Act (MTA) related to the sale of foreign currency and the agent of the payee exemption.

California DBO opinion letters cover activities exempt from MTA licensing

The opinion letters issued throughout the summer covered virtual currency and agent of payee rules under the California Money Transmission Act.

CFL Overview [Webcast Archive]

Debbie Stopeck, a senior program manager at APPROVED, shares her unique insights from a career spanning nearly four decades in licensing at the California DBO. [Checkpoint Webcast]

Upcoming deadlines: CRMLA license annual report and CA Holden Act report

CRMLA licensees are required to file an annual report with the California DBO no later than March 1, 2020. Some lenders must also file a Holden Act report by March 31, 2020

Upcoming deadline: CFL license annual report

The DBO does not grant filing extensions, and missing the March 15 deadline may result in monetary penalties and/or suspension or revocation of the license.

Proposal seeks to increase CA consumer protection and financial innovation

Gov. Newsom’s proposal would include the creation and administration of the California Consumer Protection Law through expansion of the California DBO

California says all CFL licensees should use NMLS

On October 25, the California Department of Business Oversight (DBO) published proposed regulations that (i) require all licensees under the California Financing Law (CFL) to register through NMLS; and (ii) establishes regulatory requirements for the oversight of Property Assessed Clean Energy (PACE) program administrators. Currently, under the CFL, some licensees engaged in residential mortgage origination…

APPROVED expands team with two key additions

WASHINGTON, D.C. (Oct. 28, 2019) APPROVED, Buckley’s licensing service for financial services companies, announces the addition of two key players as it expands its state examination management and California licensing capabilities — Kristie Battershell and Debbie Stopeck. “We continue to build APPROVED by attracting talented people with deep knowledge of the licensing process who know…

Upcoming deadline: California license annual assessment

The California Department of Business Oversight (DBO) has notified California Financing Law (CFL) licensees and California Residential Mortgage Lending Act (CRMLA) licensees of their annual assessment obligations for fiscal year 2019-2020. Assessment invoices must be paid by October 31, 2019.  For CRMLA licensees, notice of the assessment was provided via an NMLS invoice last month.…

Debbie Stopeck Brings Three Decades of Licensing Experience to APPROVED

We are excited to share the news that Debbie Stopeck has joined APPROVED after a long career at the California Department of Business Oversight. We’ve asked Debbie to develop a comprehensive licensing consulting practice for California Financing Law (CFL)-eligible clients. In that role, she’ll provide oversight of CFL and other state financial services applications, and…

23 states agree to streamline money service licensing process for fintech companies

On June 24, the Conference of State Bank Supervisors (CSBS) announced that financial regulators from 23 states have now agreed to a multi-state compact that will offer a streamlined licensing process for money services businesses (MSB), including fintech firms. As previously covered by InfoBytes, in February 2018, the original agreement included seven states. According to the announcement, 15…

APPROVED Checkpoint: Fingerprinting for California license applications

Many license applications require fingerprints from officers, directors, natural person owners, and other individuals named in the application for purposes of running FBI and/or state criminal history background checks. Fingerprinting requirements and processes vary by state, but because so many of the players in the financial services industry are subject to licensing in California, it…

Upcoming March deadlines: California license annual reports

California licensees have a pair of deadlines approaching in March. The annual report for California Residential Mortgage Lending Act licensees is due by March 1, and the annual report for California Financing Law licensees is due by March 15. Both reports cover activity conducted by licensees in calendar year 2018 and the information provided is…

Upcoming deadline: California license assessments

The California Department of Business Oversight has notified California Financing Law licensees and California Residential Mortgage Lending Act (CRMLA) licensees of their annual assessment obligations for fiscal year 2018-2019. The assessments cover each licensee’s share of the cost of administering the programs under the California Financial Code and must be paid by October 31, 2018.…

California governor approves revisions to Student Loan Servicing Act

On September 14, the California governor approved AB 38 amending the state’s Student Loan Servicing Act (Act). The Act provides for the licensure, regulation, and oversight of student loan servicers by the California Department of Business Oversight (CDBO). Among other things, the amendments: (i) clarify the circumstances under which the Commissioner of the CDBO may deny a…