Department of Financial Protection and Innovation Monthly Bulletin

Monthly Bulletin – November 2022

Volume 10, Number 4

DFPI Takes Actions On Crypto Asset Accounts and Businesses

On Nov. 16, the DFPI issued a notice to suspend SALT Lending LLC’s California Financing Law license for 30 days pending the Department’s investigation into SALT’s recent announcement to limit its platform activity including pausing client withdrawals.

On Nov. 11, the DFPI issued a press release announcing a notice to suspend BlockFi Lending LLC’s California Financing Law lender license for 30 days pending the Department’s investigation into BlockFi’s recent announcement to limit its platform activity including pausing client withdrawals.

On Nov. 10, the DFPI issued a press release announcing an investigation into  the apparent failure of crypto asset platform FTX and encouraging affected parties to file complaints with the DFPI.

Cryptocurrency signs on a cell phone

On Oct. 17, the DFPI issued a desist and refrain order pursuant to the California Financial Protection Law, Financial Code section 90015, subdivision (d) against GMO Global, a company believed to be based out of Japan that lured customers out of their money by creating a fabricated business in which it acted as a custodian of funds and a self-directed cryptocurrency trading service through its website and mobile applications. The order found that GMO Global was a “covered person” providing a financial service or product by taking deposits, transmitting or exchanging funds and acting as a custodian of funds on behalf of a consumer.

Broker-Dealer/Investment Adviser Renewals Due Dec. 12

Time to renew logo
A reminder that 2023 registration renewal statements and fees for the Broker Dealer/Investment Adviser (BDIA) program are due by Dec. 12, 2022.

All registered firms may view and print their preliminary renewal statements through E-Bill on FINRA’s WebCRD/IARD system. The DFPI will be sending out courtesy renewal reminder on Nov. 21. Annual renewal fees are due for broker-dealers, investment advisers and exempt reporting advisers.

For more information on the 2023 renewal program for investment advisers and exempt reporting advisers, including a renewal calendar, payment methods and FAQs, visit the CRD/IARD website at https://www.iard.com/renewals. For more information on the 2023 renewal program for broker-dealers, visit the CRD web site at http://www.finra.org/industry/renewal.

NMLS License Renewal Began Nov. 1

NMLS logo

As of Nov. 1, the Conference of State Bank Supervisors (CSBS) encourages individuals and businesses that provide mortgage, money transmission, debt collection and consumer financial services to renew their annual licenses in the Nationwide Multistate Licensing System & Registry (NMLS).

More than 261,000 mortgage loan originators (MLOs) and companies are licensed to conduct business, accounting for nearly 1.1 million state licenses to be renewed. There are nearly 21,000 more MLOs eligible to renew their licenses than this time last year. In addition, the number of individual state licenses eligible for renewal is 13 percent higher than the same time last year, while the number of company licenses eligible for renewal is up 16 percent compared to this time last year.

Information on NMLS renewal is available on the Annual Renewal page of the NMLS Resource Center (www.nmls.org). To find specific guidance under the California Financing Law, begin by selecting “California” on the State Licensing page and follow the links to the transition checklists for the Financing Law.

Federally registered MLOs and institutions must also renew their registrations via NMLS by Dec. 31. More information for federal registrants is available on the NMLS Federal Registry Resources page.

 

Banks and Credit Unions to Report Fee Income from Nonsufficient Funds and Overdraft Charges

Regulation stamp logo

SB 1415 was signed into law by Governor Newsom. It requires state-chartered banks and credit unions to notify the Department of Financial Protection and Innovation (DFPI) annually of the revenue they received from fees on nonsufficient funds and overdraft charges during the calendar year. These reports are due by March 1 so the DFPI can publish the information on its website by March 31.

DFPI is currently developing a data collection and reporting process and anticipates notifying state-chartered banks and credit unions by yearend.

Please refer to the FAQs or contact Derek Nelson at derek.nelson@dfpi.ca.gov (banks) or Kim-Phuong Hoang at kim-phuong.hoang@dfpi.ca.gov (credit unions) for more information.

 

DFPI Student Loan Scam Webinars

A person with loan bag on his bag

The DFPI has been partnering with consumer advocates, government organizations, and California legislative offices to host multiple student loan webinars. Topics covered in these webinars include the California Student Borrower Bill of Rights, how to apply for the Public Service Loan Forgiveness (PSLF) waiver, the Biden-Harris Administrations Student Debt Relief application, and protecting yourself from student loan scams and fraud.

Student loan repayments are scheduled to restart after Dec. 31, 2022, for almost four million Californians. Know your rights and your options.

For videos of past student loan workshops, visit the DFPI “Californians with Student Loans” playlist set up on our YouTube Channel: https://www.youtube.com/playlist?list=PL9JLpvE-qjAYszf6F2mQdF1LSz-YP3RPi.

DFPI Seeks Input for Website Renovation

DFPI Logo

The DFPI is working to improve our public-facing website and welcomes any feedback our readers and stakeholders can offer based on your user experience.

Completing the DFPI Website Improvement Survey helps us enact impactful changes that will support our mission of protecting California consumers and enhancing their awareness of potential marketplace risks and fraud. Thank you for participating.

Financial Protection Resources for Veterans

DFPI Logo
Veterans Day is celebrated each November as a tribute to military veterans who have served in the U.S. Armed Forces. According to a recent AARP Report, veterans are much more likely than civilians to be targeted by fraudsters. Veterans can be viewed as easy targets by scammers due to the assumption that veterans have a sense of giving back to other fellow veterans. This has led to fake veteran charities or causes being among the highest scams reported by veteran victims.

The DFPI offers a wide range of resources dedicated to protecting our California veterans and military servicemembers. We offer free educational resources on our Consumer Financial Education for Military and Veterans Webpage. You can also find additional resources and downloadable brochures on our Information for Military Service Members Webpage.

“Thinking Money” Documentary from FINRA

Thinking Money logo

The Financial Industry Regulatory Authority (FINRA) has produced a film exploring the emerging field of behavioral economics and trends in the population on spending, saving and economic decision-making.

The documentary film, Thinking Money: The Psychology Behind Our Best and Worst Financial Decisions, uses a mix of humor, on-the-street interviews, and provocative insights from innovative thinkers to explore why we spend, why we save (or don’t), and how we think about money. The film is produced by the Financial Industry Regulatory Authority (FINRA) Foundation.


Licensee logo

LICENSEE ACTIVITY


Commercial Bank Activity

New Bank

Bank Irvine
6201 Oak Canyon, Irvine, CA 92618
Phone #: (949) 892-1000
Officers: Jianyin (Paul) Peng – President and Chief Executive Officer
John Shindler – Chief Financial Officer
Charles Fenton – Chief Credit Officer
Capitalization: $30,300,000.00
Website: www.bankirvine.com
Opened: October 18, 2022

Acquisition of Control

Allegiant United Holdings, Inc., Anthony Gressak, Mark Troncale and Mark Rebal’s approval to control Nano Banc (formerly known as Commerce Bank of Temecula Valley)
Revoked: 9/14/22

Change of Name

Friendly Hills Bank, to change its name to First Pacific Bank
Notified: 10/21/22

Manufacturers Bank, to change its name to SMBC Manubank
Notified: 10/18/22

Credit Union Activity

Merger

allU.S. Credit Union, Salinas, California, to merge with and into Pentagon Federal Credit Union, McLean, Virginia
Approved: 10/01/22
Effected: 10/01/22

Barstow Community Credit Union, Barstow, to merge with and into Frontwave Credit Union, Oceanside
Approved: 10/0122
Effected: 10/01/22

California Bear Credit Union, Los Angeles, to merge with and into Credit Union of Southern California, Anaheim
Approved: 10/01/22
Effected: 10/01/22

Sequoia Federal Credit Union, Redwood City, to merge with and into PremierOne Credit Union, San Jose
Filed: 10/18/22

Change of Name

University & State Employees Credit Union, to change its name to BluPeak Credit Union
Effected: 10/28/22

Premium Finance Company Activity

New Premium Finance Company

Peak Premium Financing Corporation
660 Newport Center Drive, Newport Beach
Approved: 10/25/22

Acquisition of Control

Accident Fund Insurance Company of America, to acquire control of Liberty Premium Finance, Inc.
Approved: 10/24/22

Rajni Kapur to acquire control of Principal Premium Financing, Inc.
Approved: 10/05/22

Voluntary Surrender

Foundation Capital Finance Corporation
Effected: 10/03/22

Foreign (Other Nation) Bank Activity

New Office

Credit Agricole Corporate and Investment Bank
2420 Sand Hill Road, Menlo Park (Representative Office)
Filed: 10/12/22

 

Foreign (Other State) Bank Activity

New Facility

  • Cornerstone Home Lending, Inc. (to convert to a Texas state savings bank, change its name to Cornerstone Capital Bank, SSB, and establish facilities under the name, Cornerstone Home Lending)
    8175 E. Kaiser Boulevard, Anaheim
  • 27201 Highway 189, Blue Jay
  • 319 Diablo Road, Danville
  • 28202 Cabot Road, Laguna Niguel
  • 990 Reserve Drive, Roseville
  • 16959 Bernardo Center Drive, San Diego
  • 1828 State Street, Santa Barbara
  • 139 Ocean Avenue Extension, Santa Monica
  • 1164 Monte Vista Avenue, Upland
  • 1500 Poole Boulevard, Yuba City

Opened: 10/01/22

Money Transmitter Activity

New Transmitter

RAM Payment, LLC
Opened: 10/13/22

Change of Name

Tilia Inc. to change its name to Tilia LLC
Effected: 10/03/22

CLOTHILDE V. HEWLETT Commissioner, Financial Protection and Innovation

The November 2022 Monthly Bulletin covers the month ended October 31, 2022.

It is issued pursuant to Financial Code section 376.

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

To subscribe, go to: https://public.govdelivery.com/accounts/CADFI/subscriber/new.

Back to the top of this newsletter

Save our water

Help us improve the DFPI website! Share your feedback.

 

Last updated: Nov 28, 2022 @ 12:35 pm