California Department of Business Oversight
Volume 5, Number 07 – February 2018
Lila Mirrashidi Promoted Deputy Commissioner for Policy
Governor Edmund G. Brown Jr. has appointed Lila Mirrashidi the DBO’s new deputy commissioner for policy. Lila assumed the position on January 22.
Lila will be advising Commissioner Jan Lynn Owen on all legislative, regulatory and policy matters related to laws under the DBO’s jurisdiction. She will also help formulate policies and procedures that support the DBO’s mission and strategic plan.
Lila will continue to head up the DBO’s Property Assessed Clean Energy (PACE) program implementation, which includes overseeing the preparation of the PACE examination and enforcement procedures; drafting of new regulations and all legislative changes; related IT upgrades; internal and external communications; and the staff training on the new PACE laws.
Lila has been deputy commissioner of the Legal Division since 2013. She was deputy commissioner of business regulations at the California Department of Corporations from 2012 to 2013, deputy appointments Secretary in the Governor’s office from 2011 to 2012 and deputy research director on the Jerry Brown for Governor Campaign from 2009 to 2010. Lila earned a law degree from the University of California, Hastings College of the Law, and a bachelor’s degree in psychology from UC Berkeley.
Tom Dresslar Returns as Special Advisor to the Commissioner
Tom Dresslar started January 8 as special advisor to the DBO Commissioner. In his new position, Tom will help the Commissioner identify and implement policy and operational priorities, help develop legislation and regulations, supervise media relations, and help write the Commissioner’s speeches.
Tom is returning to the DBO after a brief retirement. He served as deputy commissioner for policy and planning from 2014 to 2016. Before joining the DBO, Tom was communications director at the California State Treasurer’s Office from 2007 to 2014, press secretary at the California Department of Justice from 2002 to 2006 and principal consultant to the Legislature’s Joint Legislative Audit Committee in 2002.
Tom also served as special assistant to the speaker in the California State Assembly Speaker’s Office of Oversight from 2000 to 2002 and was the Sacramento bureau chief at the Daily Journal from 1987 to 2000. He served in the U.S. Air Force as a flight records and airfield management specialist from 1971 to 1979.
Request for Forbearance in California Wildfire and Mudslide Disaster Areas
In recognition of the impact of the December wildfires in Los Angeles, San Diego, Santa Barbara and Ventura counties, Commissioner Owen and the California Office of Emergency Services (CalOES) are asking financial services providers in the communities to recognize the severity of the disaster and work with those affected in their efforts to repay mortgages and other loans.
Although there are limitations on assistance institutions can provide, any support extended to survivors of this disaster is appreciated.
A number of disaster assistance programs have been implemented to help individuals, businesses, farmers and the impacted communities recover. The state urges forbearance on the part of many industries to help with what is expected to be a long-term recovery process.
For additional information, contact Lidia Armas, individual assistance officer, CalOES, at (916) 340-5893.
2017 Escrow Annual Liability Reports Due February 15
The 2017 Escrow Annual Liability Report forms are now available on the DBO website portal. Like last year, reports will be filed electronically through the portal.
Please follow the instructions contained in the report for correctly entering data, saving content, resuming input and filing the report. The report must be filed no later than February 15.
CFL Annual Reports Due March 15
The annual report for licensees engaged in business under the California Financing Law (formerly the California Finance Lenders Law) for calendar year 2017 must be submitted to the DBO no later than March 15.
Filling out and submitting the report is a web-based process that must be completed on the DBO’s website via the self-service portal.
Missing the Mar. 15 filing deadline may result in penalty assessments. Failure to file an annual report constitutes grounds for license revocation.
Licensees with questions should email CFL.Inquiries@dbo.ca.gov or call (213) 576-7690.
2017 CDDTL Annual Report and Industry Survey Due March 15
All California Deferred Deposit Transaction Law (CDDTL) licensees must submit to the DBO no later than March 15 a complete Annual Report and Industry Survey for calendar year 2017.
The Annual Report and Industry Survey must be completed online through the self-service portal on the DBO website.
To prepare and submit the Annual Report and Industry Survey, all CDDTL licensees are required to have a registered DBO portal account.
If you have questions about the Annual Report and Industry Survey, or need clarification on the instructions, please email RespondToCDDTL@dbo.ca.gov.
REAL ID Implementation
Beginning October 1, 2020, the federal government will require a driver’s license or identification (ID) card to be REAL ID compliant to use it as identification to board an airplane, or enter military bases and certain federal facilities.
The California Department of Motor Vehicles (DMV) now offers the option to apply for a REAL ID driver license or ID card.
Current, valid California driver’s licenses and ID cards can be used for federal purposes until October 1, 2020. After that date, a REAL ID or other federally approved document will be required.
The DMV is beginning an outreach campaign to inform Californians about REAL ID implementation. For more information, visit the DMV webpage on REAL ID.
Commissioner Issues Broker-Dealer/Investment Adviser Program Report
The DBO has posted the 2018 Report on the Broker-Dealer/Investment Adviser Program (PDF) as required by the Budget Act of 2014. The report is due to the Legislature and Department of Finance by January 10 of each year.
The report includes information on the number of positions authorized and filled, the number and share of licensees examined, outcomes of examinations, and estimated staffing levels needed to meet statutorily-required examination cycles.
Credit Loss Readiness Tool Now Available
The Conference of State Bank Supervisors (CSBS) State Supervisory Processes Committee, in consultation with state examiners, has developed and approved a Current Expected Credit Losses (CECL) Readiness tool to help financial institutions prepare for the coming changes associated with the Financial Accounting Standards Board’s release of Accounting Standards Update 2016-13, Financial Instruments — Credit Losses (Topic 326).
The tool provides a framework that both banks and credit unions can use to plan for the eventual implementation of these accounting changes. CECL will have a significant impact on the way a financial institution estimates and provides for credit losses and early preparation is prudent.
Each institution will approach the implementation of CECL differently, and this tool does not attempt to standardize the implementation process or set forth regulatory expectations.
Questions should be directed to Kyle Thomas at firstname.lastname@example.org.
AARP BankSafe Program
The American Association of Retired Persons (AARP) has partnered with more than 200 experts from banks and credit unions across the country to develop BankSafe. It’s a first-of-its-kind, free training program that teaches frontline employees to recognize red flags and take the right steps to stop financial exploitation.
California is one of 12 states selected to participate in the pilot launch of the training in May. Financial exploitation is a growing problem in California and across the country. Nationally, the average victim of financial exploitation loses $120,000 (nearly the total retirement savings of the average older person). Financial institutions lose $1 billion per year in deposits.
More information on participating in the study is available at the AARP BankSafe Pilot Program Overview.
To sign up as a BankSafe pilot participant, complete the online registration form by April 1, 2018.
Commercial Bank Activity
750 B Street, San Diego
Officers: Dan Yates, Chief Executive Officer
Robert J. Lampert, Executive Vice President / Chief Financial Officer
Steve Sefton, President
Scott Parker, Chief Credit Officer
Community Business Bank, West Sacramento, to merge with and into Suncrest Bank, Visalia
First National Bank of Northern California, South San Francisco, to merge with and into Tri Counties Bank, Chico
Ojai Community Bank, Ojai, to merge with and into Bank of the Sierra, Porterville
Acquisition of Control
Carpenter Bank Partners, Inc. and affiliates, to acquire control of Pacific Premier Bancorp et.al.
Sale of Partial Business Unit
East West Bank to sell the banking business of its Desert Community Bank division to Flagstar Bank, FSB
Credit Union Activity
Allied Trades Credit Union, Stockton, to merge with and into Uncle Credit Union, Livermore
Community First Credit Union, Santa Rosa, to merge with and into Mendo
Lake Credit Union, Ukiah
Stockton Community Federal Credit Union, Stockton, to merge with and into UNCLE Credit Union, Livermore
Foreign (Other Nation) Bank Application
Canadian Imperial Bank of Commerce
3000 Sand Hill Road, Menlo Park (Representative Office)
Foreign (Other State) Bank Application
Relocation of Facility
Dorsey & Whitney Trust Company, LLC
From 305 Lytton Avenue, Palo Alto, to 600 Anton Boulevard, Costa Mesa (Facility – Uninsured Trust Company)
Money Transmitter Activity
Acquisition of Control
Fintech Acquisition Corp. II, to acquire control of Intermex Wire Transfer Corp.
JAN LYNN OWEN
Commissioner of Business Oversight
The February 2018 Monthly Bulletin covers the month ended January 31, 2018. It is issued pursuant to Financial Code section 376.
The Monthly Bulletin is available without charge via e-mail. To subscribe, go to: https://dfpi.ca.gov/Resources/subscription.asp