Department of Business Oversight - Monthly Bulletin

December 2019

Volume 7, Number 5

Monthly Bulletin

Kirk Wallace: Oct. 18, 1960 – Nov. 24, 2019

Photo of Kirk WallaceThe Department of Business Oversight lost a longtime colleague, mentor and friend when Senior Enforcement Counsel Kirk Wallace passed away suddenly while on vacation with his family in Oregon last month. He was 59.

Kirk had served as senior counsel in the DBO’s San Francisco office since 2003. He was known for his success in handling high profile complex litigation matters for the Department. He passed away while mountain biking, a sport he enjoyed very much. Kirk’s insight, professionalism and friendship will be greatly missed.

New State Laws That May Affect DBO Licensees

Capitol BuildingHighlights of 2019 Chaptered Legislation, a compendium of new state laws that may affect or be of interest to DBO licensees, is now available on the Department’s website.

This collection of new state laws includes a brief description and a link to the text of each bill. We hope you find the document useful and welcome any suggestions to improve its value to you and your organization.

Broker-Dealer/Investment Adviser Renewals Due Soon

a clockA reminder that 2020 registration renewal statements and fees for the Broker-Dealer/Investment Adviser (BDIA) program are due by Dec. 16.

All registered firms may view and print their preliminary renewal statements through E-Bill on FINRA’s WebCRD/IARD system. The DBO sent out a courtesy renewal reminder on Dec. 2. Renewal fees are due for broker-dealers, investment advisers and exempt reporting advisers.

Registration renewal fees for each registered Broker-Dealer Agent (Agent) and each registered Investment Adviser Representative (IAR) have been increased from $25 to $35. This new fee will be reflected in the preliminary renewal statement which is now available through E-Bill on FINRA’s WebCRD/IARD system.

On October 30, the North American Securities Administrators Association (NASAA) announced the continued waiver of Investment Adviser Registration Depository (IARD) system fees for state-registered investment adviser firms. NASAA also announced $5 increases in the IARD system fee for state registered investment adviser representatives, effective January 1, 2020. For more information please review NASAA 2020 Fee Announcement.

Full payment of each preliminary renewal statement must be posted to a firm’s FINRA Renewal Account by Dec. 16. Firms are encouraged to submit their payments no later than Dec. 14 to make sure payments post to renewal accounts by the deadline.  Renewal fees must be posted by Dec. 16 for a firm’s registration to remain in effect during calendar year 2020.

For more information on the 2020 renewal program for investment advisers and exempt reporting advisers, including a renewal calendar, payment methods and FAQs, visit the CRD/IARD website at

For more information on the 2020 renewal program for broker-dealers, visit the CRD website at

Banks Must Submit Lists of Offices by Dec. 31

bank logos

Pursuant to Financial Code section 1077, all commercial banks, industrial banks and trust companies are required to file a list of all offices currently maintained and operated by the bank. The report shall designate the type and complete address of each such office.  Please note this requirement does not apply to other licensee types, such as foreign banking organizations, credit unions, money transmitters, etc.

For the purposes of section 1077, please provide the DBO the following information on or before December 31:

  • Name of bank
  • Popular name of branch offices and facilities
  • Office type (include the head office, branch and facility locations; do not include free-standing ATMs)
  • Street address, including city, state, country and ZIP code.

Responses may be emailed to or sent by regular mail to Department of Business Oversight, One Sansome Street, Suite 600, San Francisco, CA 94104 Attn: Licensing Section.

For questions, please contact Patrick Carroll at or (415) 263-8559.

New Streamlined Licensing Process for Mortgage Loan Originators Now in Effect

NMLS logoAs of Nov. 24, mortgage loan originators (MLOs) can continue to do business while moving between states or from a bank to a nonbank employer under a new provision of the SAFE Act of 2008 known as Temporary Authority to Operate. This change in federal law allows California and other states to streamline the licensing process for state-licensed MLOs and federal registrants.

Under Temporary Authority, eligible federally registered MLOs seeking state licensure and eligible state-licensed MLOs seeking licensure in another state can continue originating loans for up to 120 days while completing any state-specific requirements.

After an MLO applies and a company sponsors the application, the Nationwide Multistate Licensing System (NMLS) will make an immediate determination of eligibility for Temporary Authority.

Up to 87 percent of all MLO applications in 2018 would have been eligible for Temporary Authority if it had been in place last year.

The Conference of State Bank Supervisors (CSBS) operates the NMLS on behalf of state regulators.

FDIC Releases Three Reports Analyzing Growth of Nonbank Lending

FDIC logoOn Nov. 14, the Federal Deposit Insurance Corporation (FDIC) released a multi-part analysis of changes in the U.S. banking system since the 1950s, especially changes occurring since the financial crisis in 2008. These reports address the shift in lending from banks to nonbanks, how corporate borrowing has moved between banks and capital markets, and the migration of home mortgage origination and servicing from banks to nonbanks. The FDIC’s reports will be published in the next edition of FDIC Quarterly. They include:

  • Bank and Nonbank Lending Over the Past 70 Years — Total lending in the U.S. has grown dramatically in the past 70 years and, since the 1970s, the share of bank loans has generally fallen as nonbanks gained market share in residential mortgage and corporate lending. In other business lines, shifts in loan holdings from banks to nonbanks have been less pronounced as banks and nonbanks continue to play important roles in lending for commercial real estate, agriculture, and consumer credit. Studying the roles that banks and nonbanks play in lending markets allows for a better understanding of how banks respond to growth in nonbank lending and the implications of associated risks for the banking sector and broader economy.
  • Leveraged Lending and Corporate Borrowing: Increased Reliance on Capital Markets, with Important Bank Links — Over the past decade, U.S. nonfinancial corporate debt reached record highs as issuance of corporate bonds and leveraged loans grew rapidly while credit quality and lender protections deteriorated. Much of this growth in corporate borrowing came through capital markets, though important connections to the banking system remain. This article examines this shift in corporate borrowing to capital markets over the past several decades. It also details the ways corporate debt has grown, the resulting risks this shift poses to banks since the 2008 financial crisis, and what factors could mitigate those risks.
  • Trends in Mortgage Origination and Servicing: Nonbanks in the Post-Crisis Period — The mortgage market changed notably after the collapse of the U.S. housing market in 2007 and the financial crisis that followed. A substantive share of mortgage origination and servicing, and some of the risk associated with these activities, migrated outside of the banking system. Some risk remains with banks or could be transmitted to banks through other channels, including bank lending to nonbank mortgage lenders and servicers. Changing mortgage market dynamics and new risks and uncertainties warrant investigation of potential implications for systemic risk.

FDIC Approves Advisory Committee of State Regulators

FDIC logo

On Nov. 19, the FDIC approved a new advisory committee for state regulators and the FDIC to discuss a variety of current and emerging issues that could impact the regulation and supervision of state-chartered financial institutions.

Once established, the new Advisory Committee of State Regulators (ACSR) will provide a mechanism to facilitate regular discussions of safety and soundness and consumer protection issues, creation of new banks, and protection of the nation’s financial system from risks such as cyberattacks or money laundering.

The advisory committee will be composed of regulators of state-chartered financial institutions from across the United States or other individuals with expertise in the regulation of state-chartered financial institutions.


Commercial Bank Activity

New Banks

Legacy Bank
Proposed location: Street address to be determined, Temecula
Correspondent: James Hicken
c/o Carpenter & Company, 2 Park Plaza, Suite 550, Irvine, CA 92614
Phone: 661-733-5099
Filed: 11/8/19


AltaPacific Bank, Santa Rosa, merged with and into Banner Bank, Walla Walla, Washington
Effected: 11/1/19

Premium Finance Company Activity

New Premium Finance Company

Alpine Premium Finance Corporation
600 W. Broadway, San Diego
Opened: 11/8/19

Mojave Financial Corp
6200 Canoga Avenue, Woodland Hills
Opened: 11/1/19

Foreign (Other Nation) Bank Activity

New Office

Banque Transatlantique
26 O’Farrell Street, San Francisco (Representative Office)
Filed: 11/20/19

Foreign (Other State) Bank Activity

New Office

Inland Bank and Trust
52 San Bonifacio, Rancho Santa Margarita (Facility – Insured Bank)
Opened: 9/16/19

Pinnacle Bank

  • 500 N. Brand Boulevard, Glendale
  • 3333 Michelson Drive, Irvine
  • 401 West A Street, San Diego
  • Address to be determined, San Francisco

No Objection: 11/20/19

Money Transmitter Activity

New Money Transmitter

Currencies Direct Inc.
Approved: 10/11/19

Mezu (NA), Inc.
Filed: 11/25/19

VendEngine, Inc.
Approved: 10/18/19
Opened: 11/14/19


MANUEL P. ALVAREZ • Commissioner of Business Oversight

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The December 2019 Monthly Bulletin covers the month ended  November 30, 2019.

It is issued pursuant to Financial Code section 376.

The Monthly Bulletin is available at no charge via e-mail.

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Last updated: Feb 10, 2023 @ 12:26 pm