Monthly Bulletin – June 2024

DFPI Launches Student Loan Empowerment Network

The DFPI launched the Student Loan Empowerment (SLE) Network on June 3. This groundbreaking initiative is the first of its kind in California, providing individualized support and legal aid to student loan borrowers. The SLE Network comprises 14 non-profit organizations across the state that will operate collaboratively to provide financial education, case management, and personalized assistance to help borrowers manage the complex challenges of student loan repayment. More than four million California student loan borrowers currently carry more than $148 billion in student loan debt, both the largest in the nation. Residents with any amount of current student loan debt are eligible to access resources through the network.

As part of DFPI’s mission to protect consumers from financial risks, fraud, and abuse, in January the DFPI awarded $7.25 million in grants to 14 organizations throughout California to offer general and specialized legal aid support to student loan borrowers.

Bankers Association of the Republic of China (Taiwan) Delegation visit

On June 3, the Department of Financial Protection and Innovation (DFPI) hosted a delegation of approximately 45 banking and finance professionals and regulators from the Bankers Association of the Republic of China (Taiwan).

Commissioner Hewlett and members of the executive team presented on the topic of DFPI’s financial regulatory policies and practices at the San Francisco office as part of a week-long trip organized through the U.S. Department of Commerce.

DFPI Cautions on Apps Offering Unregistered Securities

A new consumer brochure describing the dangers of unregistered securities offered through smartphone apps is now posted to the DFPI website. The brochure gives advice to consumers on how to protect themselves from unlawful investment activity and what to do if they get involved with such apps.

On June 5, the DFPI issued desist and refrain orders for violations of California securities laws against Alluo and Star Network, which both unlawfully offered investments to the general public through smartphone apps available for download from app stores. The orders require these entities to desist and refrain from the further offer and sale of securities unless and until qualification requirements of the law have been met.

The DFPI urges consumers to exercise extreme caution before responding to any solicitation offering investment or financial services. To check whether an investment or financial service provider is properly licensed in California, or to submit a complaint, consumers should go to the DFPI website at dfpi.ca.gov/consumers or call 1-866-275-2677.

Some Escrow Reports Due June 13

Escrow agents are required to submit to the Commissioner an annual report prepared by an independent certified public accountant or an independent public accountant (Financial Code section 17406) within 105 days after the close of the escrow agent’s fiscal year. The annual report includes audited financial statements and required supplemental information.

If your fiscal year ended on February 29, 2024, your annual report is due June 13, 2024. Please have your CPA email your report to [email protected] by the deadline using a secured, encrypted delivery system. The use of a secured dropbox is also acceptable. If your CPA is unable to submit the annual report electronically, it can be mailed to Queen Padilla, Senior Financial Institutions Examiner, Escrow Law, Department of Financial Protection and Innovation, 320 West Fourth Street, Suite 750, Los Angeles, CA 90013.

Penalties for failure to file the annual report by the due date or to include required information are $100 per day for the first five days a report is late and $500 per day thereafter (Financial Code section 17408). Failure to file a report or to include any required information may also result in the suspension or revocation of an escrow agent’s license or prompt an immediate examination (Financial Code section 17602.5).

For questions about the annual reports, email [email protected].

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June 18 Escrow Advisory Committee Meeting

The next Escrow Law Advisory Committee meeting will be on Tuesday, June 18, 2024, at 9 a.m. PST. The meeting will be held at the Department of Financial Protection and Innovation’s Los Angeles office located at 300 S. Spring Street, in the 15th floor video conference room. The meeting may also be attended virtually with details posted at the DFPI Escrow Law page. Please contact Assistant Deputy Commissioner Paul Liang in the Los Angeles office at (213) 576-7535 if you have any questions. The agenda for the June 18, 2024 meeting (PDF) and the minutes for the March 12, 2024 meeting (PDF) are available at the DFPI website.

CSBS Community Bank Surveys

The Conference of State Bank Supervisors (CSBS) is conducting two important surveys for Community Banks. The DFPI encourages all state banks to participate.

2024 Annual Survey of Community Banks – The 2024 CSBS Annual Survey of Community Banks close date of June 30 is rapidly approaching, and all California banks are encouraged to participate.

This is an important opportunity to share your perspectives on community banking, the economy, regulation, and supervision with state and federal policymakers. The survey results are presented each year at the Community Banking Research Conference, an event developed by the Conference of State Bank Supervisors (CSBS), Federal Reserve System, and the FDIC.

The survey takes approximately 25-35 minutes to complete, and responses may be entered during multiple sessions between now and June 30. If you did not receive a receive a notice with the link to complete the survey, please contact [email protected].” For reference purposes, a PDF of the 2024 Annual Survey questions is available here.

Note that this survey is not mandatory, but California banks’ valuable feedback will enhance the value of the survey results in serving local communities. Participants can email [email protected] with questions.

Community Bank Sentiment Index – California banks are encouraged to participate in the quarterly Community Bank Sentiment Index (CBSI) survey sponsored by the Conference of State Bank Supervisors (CSBS). The survey gauges the economic outlook of community banks across the nation. Participation takes five minutes and is open through June 28. No preparation is necessary. If you did not receive a receive a notice with the link to complete the survey, please contact [email protected].

Responses to seven core questions will characterize how community bankers feel about the economic outlook. Responses are analyzed and compiled into a single number. Anything above 100 indicates a positive sentiment, and anything below 100 indicates a negative sentiment. CBSI results are included in the Federal Reserve Economic Data, the online database maintained by the Federal Reserve Bank of St. Louis, known informally as the FRED.

Invitation for Public Comment on Proposed NMLS Fee Increases

The Conference of State Bank Supervisors (CSBS) issued a request for public comment on proposed increases to processing fees for the Nationwide Multistate Licensing System and Registry (NMLS) in 2025. If approved following the comment period, the proposed increase will be the first time these fees have changed since NMLS launched nationwide in 2008.

NMLS processing fees apply to companies and individuals in the mortgage, debt, consumer finance, and money services businesses industries. The State Regulatory Registry Board of Managers, which governs NMLS operations, reviews NMLS fees annually. More information may be found at the CSBS website here.

CSBS is continually adding information to the NMLS Modernization web page to keep it up to date with upcoming NMLS enhancements.

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Consumer Webinar July 10

The DFPI hosts a monthly consumer financial education webinar exploring a new topic every month. Each webinar includes guest speakers and a Q&A session. Everyone who registers for these webinars will be emailed a link to the recording and a copy of the slides. Past presentations in the series may be viewed on the DFPI YouTube site.

The next webinar, “Paying for Higher Education, Trade School, and Apprenticeships,” is scheduled for July 10 at 12 p.m., PST (Registration).

This webinar will feature as guest speakers DFPI Student Loan Ombuds Celina Damian and a representative from the California Department of Industrial Relations.

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LICENSEE ACTIVITY

Commercial Bank Activity

Sale of Partial Business Unit

Bank of Hope, Los Angeles, California to sell the banking businesses of its Annandale and Centreville, Virginia branches to PromiseOne Bank, Duluth, Georgia
Filed: 5/02/24
Approved: 5/30/24

Acquisition of Control

PCB Financial, Inc. to acquire control of Northern California Bancorp, Inc. /
Monterey County Bank
Approved: 5/30/24

Credit Union Activity

Conversion

Arrowhead Credit Union, Rancho Cucamonga, to convert to federal charter
Filed: 5/28/24

Merger

1st Valley Credit Union, San Bernardino, California, to merge with and into America First Credit Union, Riverdale, Utah
Filed: 5/15/24

Allied Healthcare Federal Credit Union, Long Beach, to merge with and into Southland Credit Union, Los Alamitos
Approved: 5/01/24
Effected 5/01/24

Foreign (Other Nation) Bank Activity

New Office

Canadian Imperial Bank of Commerce
101 Second Street, San Francisco
Filed: 5/10/24

Voluntary Surrender

Credit Suisse AG

• 650 California Street, San Francisco (Representative Office)
• 1999 Avenue of the Stars, Los Angeles (Representative Office)

Effected: 5/02/24

Money Transmitter Activity

New Transmitter

United Service Center LLC
Filed: 5/16/24

Voluntary Surrender

Figure Payments Corporation
Effected: 5/10/24