California Licensing News and Resources

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

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

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

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.

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

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

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

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

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

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.”

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

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

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

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

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

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

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

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

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.

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

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

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

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

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.

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

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

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

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

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…

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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.

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 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.

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

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

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.

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

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

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

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

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

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

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

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

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

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

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.

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

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

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.

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

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

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).

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

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

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.

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

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.

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.

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

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.

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

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

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

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

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.”

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.

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

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

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.

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).

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

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.

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

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]

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

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.

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

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…

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…

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.…

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…

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…

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…

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…

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.…

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…