California Department of Business Oversight
Volume 6, Number 08 – March 2019
Winter Storm Response — Emergencies Declared in 26 California Counties
Governor Gavin Newsom issued emergency proclamations on Feb. 21 and Feb. 28 covering 26 California counties as a result of atmospheric river storm systems that swept across California causing flooding, damaging structures and infrastructure, and threatening homes.
The affected counties are Amador, Glenn, Lake, Mendocino, Sonoma, Calaveras, El Dorado, Humboldt, Los Angeles, Marin, Mendocino, Modoc, Mono, Monterey, Orange, Riverside, San Bernardino, San Diego, San Mateo, Santa Barbara, Santa Clara, Shasta, Tehama, Trinity, Ventura and Yolo.
Commissioner of Business Oversight Jan Lynn Owen, pursuant to authority under the Bank Extraordinary Situation Closing Act, determined that an extraordinary situation exists in these 26 counties and issued a proclamation authorizing state-chartered banks to close any or all of their offices in affected areas until the Commissioner determines the extraordinary condition has ended.
Commissioner Owen also urges DBO licensees to grant appropriate latitude to affected customers to help everyone deal with economic hardships caused by these disasters. Although there are limitations on assistance institutions can provide, any support extended to victims of these disasters is appreciated.
2018 Annual Reports for CFL, RSDL Licensees Due March 15
Annual reports for licensees engaged in business under the California Financing Law (CFL) and the Responsible Small Dollar Loan (RSDL) pilot program for calendar year 2018 must be submitted to the DBO no later than March 15, as required under Financial Code section 22159(a).
2018 CDDTL Annual Reports and Industry Surveys Due March 15
All California Deferred Deposit Transaction Law (CDDTL) licensees must submit a 2018 Annual Report and Industry Survey to the DBO by March 15 as required by California Financial Code sections 23026 and 23015.
The Annual Report and Industry Survey must be completed online through the DBO self-service portal. If you have questions, or need clarification on the instructions, please email RespondToCDDTL@dbo.ca.gov.
Student Loan Servicing Annual Reports Due March 15
Pursuant to Financial Code section 28146(a) of the Student Loan Servicing Act, each student loan servicer is required to file an annual report with the Commissioner of Business Oversight on or before March 15. The Student Loan Servicing Annual Report Form is on the DBO website.
State Financial Regulators Embrace Recommendations from Fintech Advisory Panel
The panel was formed in 2017 to identify and address unnecessary problems in the multistate experience while improving financial supervision of fintechs and other nonbanks that operate regionally or nationwide. In the U. S., nonbanks – such as mortgage lenders, money services businesses and consumer finance companies – are licensed and supervised at the state level.
CSBS agreed to implement 14 recommendations from the panel, including the creation of uniform definitions and practices, increasing transparency, and expanding the use of common technology among all state regulators.
CSBS also will:
- Develop a 50-state model law to license money services businesses
- Create a standardized call report for consumer finance businesses
- Build an online database of state licensing and fintech guidance, while encouraging a common standard
- Develop a new technology offering a State Examination System to simplify examinations of nonbanks operating in more than one state
- Expand the use of the Nationwide Multistate Licensing System among all state regulators and to all nonbank industries supervised at the state level
See the full list of recommendations and regulator responses here.
The panel is one of several initiatives within CSBS Vision 2020, through which state regulators are working to modernize the financial regulation of nonbanks, in part by harmonizing multistate licensing and supervision.
CFPB Releases Compliance Guide for Payday Lending Rule
The Payday Lending Rule governs payday loans, vehicle title loans, and certain high-cost installment loans. The compliance guide focuses on the payment provisions of the Payday Lending Rule, found in Subpart C of the rule.
The guide also discusses general coverage provisions, lenders and servicers subject to its mandates, prohibited payment transfer attempts, and disclosure of payment transfer attempts, which are found in Subpart A of the rule.
Lastly, the guide focuses on the record retention and compliance program requirements, found in Subpart D of the rule.
The guide should be reviewed in conjunction with the rule as the guide does not include interpretations issued or released after February 2019.
CFPB Begins Rulemaking on Residential PACE Financing
The Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA), signed into law in May 2018, directed the bureau to prescribe certain regulations for PACE financing. Section 307 of EGRRCPA amends the Truth In Lending Act to mandate CFPB develop regulations on PACE financing.
The CFPB will consider the information it receives in response to the ANPR to develop a Notice of Proposed Rulemaking. The information solicited will enable the bureau to better understand the market and unique nature of PACE financing. The bureau expects to formulate proposed regulations that achieve statutory objectives while considering costs and benefits.
The public will have 60 days to comment after publication of the ANPR in the Federal Register.
Commercial Bank Activity
El Dorado Savings Bank, FSB, Placerville, to merge with and into Pacific Western Bank, Beverly Hills
Purchase of Partial Business Unit
Exchange Bank, Santa Rosa, to purchase approximately $80 million of fiduciary assets from American Trust and Savings Bank, Dubuque, IA
Premium Finance Company Activity
New Premium Finance Company
ATM Premium Finance Inc.
11323 Washington Boulevard, Los Angeles
Trust Company Activity
New Trust Company
Peninsula Bay Trust Company
Voluntary Surrender of License
Capital Guardian Trust Company
333 South Hope Street, Los Angeles
Credit Union Activity
McClatchy Employees Credit Union, Sacramento, to merge with and into First U.S. Community Credit Union, Sacramento
Foreign (Other State) Bank Activity
CIBC Bank USA
Three Embarcadero Center, San Francisco (Facility – Insured Bank)
Money Transmitter Activity
New Money Transmitter
Currencies Direct Inc.
Veem Payments Inc.
JAN LYNN OWEN
Commissioner of Business Oversight
The March 2019 Monthly Bulletin covers the month ended February 28, 2019. 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/connect-with-the-dbo-via-email/