Monthly Bulletin – December 2024

Commissioner Hewlett to retire

DFPI Commissioner Clothilde V. Hewlett announced her retirement after more than three years of service with the DFPI. She will be stepping down from her position at the end of the year.

Commissioner Hewlett was appointed by Governor Gavin Newsom in September 2021. She has served California under three different governors, dedicating much of her career to public service, advancing good governance, and protecting consumers.

Read her announcement letter on the DFPI website.

New State Laws That May Affect DFPI Licensees

Highlights of 2024 Chaptered Legislation, a compendium of new state laws that may affect or be of interest to DFPI licensees, is now available on the Department’s website. The collection includes a brief description and a link to the text of 22 bills.

Key bills include AB 1934 (Grayson) which delays the implementation date of the Digital Financial Assets Law (DFAL) to July 1, 2026, and SB 919 (Umberg) regarding the Franchise Investment Law. Also included are SB 1061 (Limón) regarding consumer medical debt and several bills regarding credit unions and mortgage foreclosures.

DFPI Exam Rate Increase in 2025

Starting Jan. 1, 2025, the department will adjust the hourly exam rates, consistent with existing statutory authority, to $120 per hour for the programs below to ensure the Department’s exam work is appropriately invoiced to cover costs.

• Mortgage Bankers (CRMLA)
• Finance Lenders (CFL)
• Payday lenders (CDDTL)
• Escrow companies
• Student Loan Servicers (SLS)
• Debt Collectors
• New Covered Persons

If you have questions regarding the exam rate, please reach out to the appropriate program:

• Mortgage bankers: [email protected]
• Finance lenders: [email protected]
• Payday lenders (CDDTL): [email protected]
• Escrow companies: [email protected]
• Student loan servicers: [email protected]
• Debt collectors: [email protected]
• New covered persons: [email protected]

2024-25 Assessment Rate for Banks, Foreign Banks, Trust Companies and Industrial Banks

2024-25 Escrow Assessment

The 2024-25 special assessment invoice will be issued and mailed to licensees under the Escrow Law in mid-January 2025. The special assessment is due within 60 days upon receipt of the invoice.

Financial Code section 17207 (h)(1) authorizes the Commissioner of Financial Protection and Innovation to levy a special assessment not to exceed $1,000 on each escrow agent for each office to pay for the costs and expenses associated with the enforcement of this division.

If an escrow agent fails to pay the special assessment within 60 days, the commissioner may assess a penalty of 10 percent of the special assessment for each month or part of a month that the payment is delayed. Also, the commissioner may by order summarily suspend or revoke the escrow agent’s license. For questions regarding the special assessment, please email [email protected].

Time to Renew

2025 Renewal Program Calendar for Broker-Dealers and Investment Advisers

Reminder emails were sent on Nov. 25 to all BDIA licensees to renew their license for the calendar year 2025. Licensees should ensure they have an active designated email address on file with the Department. Please refer to the “For Broker-Dealers” and “For Investment Advisers” sections on the Broker-Dealer Investment Adviser  page for more information about the designated email requirements. Renewal payments were due Dec. 12.

Thursday, Dec.  26, 2024 – Last Day the Web CRD and IARD portals are open to submit renewal form filings prior to year-end. Web CRD and IARD registration sites are available from 5 a.m. until 6 p.m. Eastern Time (ET).

New Continuing Education Requirements – Effective May 1, 2024, each investment adviser representative with a full year of registration must annually complete 12 credits of continuing education (six credits of Products and Practice and six credits of Ethics and Professional Responsibility). The continuing education must be completed by the representative and reported by the approved course provider before IARD shuts down for the year on Dec. 26, 2024, at 6 p.m. E.T.

Friday, Dec. 27, 2024 – Web CRD and IARD portals will be unavailable due to Financial Industry Regulatory Authority (FINRA) statement and renewals processing.

Saturday, Dec. 28, 2024 – Tuesday, Dec. 31, 2024 – Web CRD and IARD portals are available for QUERY-only and the creation of “Pending” filings.

DFPI Debt Collection Advisory Committee

The DFPI will be soliciting applications for members to the DFPI Debt Collection Advisory Committee at the end of January and will accept applications through Feb. 21, 2025.

Financial Code section 100025 provides for a Debt Collection Advisory Committee:

• Appointed by the Commissioner to a two-year term.
• Seven members, including at least one representing consumers.
• No compensation or reimbursement of expenses.
• A minimum of two meetings per year.

Those interested in serving on the Debt Collection Advisory Committee will need to provide a statement summarizing their qualifications, or submit the available form. Please submit the form, or statement of qualifications, to [email protected] no later than Feb. 21, 2025.

Current terms are expiring in April of 2025. New appointments will be announced in April of 2025 for the upcoming term. For full details please go to the DFPI Application Process webpage.

Banks Must Submit Lists of Offices by Dec. 31

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, the DFPI must be provided with the following information on or before Dec. 31, 2023:

• 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 [email protected] or sent by regular mail to Department of Financial Protection and Innovation, One Sansome Street, Suite 600, San Francisco, CA 94104 Attn:  Licensing Section.

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

REMINDER: Banks and Credit Unions to Report Fee Income from NSF and Overdraft Charges

Financial Code section 521 requires state-chartered banks and credit unions to report annually to the Department of Financial Protection and Innovation (DFPI) the revenue they received from fees on nonsufficient funds and overdraft charges during the calendar year. These reports are due by March 1, 2024, so the DFPI can publish the information on its website by March 31.

On Dec. 31, the DFPI will send an email with a report link to the designated email address of each reporting institution.

Please refer to the FAQs or contact Marilyn Davis at [email protected] (banks) or Kim-Phuong Hoang at [email protected] (credit unions) for more information.

Q4 2024 Community Bank Sentiment Index

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 Dec 31. No preparation is necessary. A notice with the survey link was sent to all state chartered banks.

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.

OAK Smart Investment Fraud Order

On Dec. 3, the DFPI issued a desist and refrain order against a crypto scheme operated by OAK Smart Investment Ltd. which offered and sold unqualified securities and misled investors. The DFPI posted a video on the DFPI YouTube page advising on this case and how consumers can stay safe from investment fraud.

Upcoming Consumer Education Events

Each month we educate consumers through community events and a monthly consumer financial education webinar.

Protect Yourself from Romance Scams
Feb. 5, 12 – 1 p.m. | Virtual 

On Feb. 5 at 12:00 noon, the DFPI will host a webinar on romance scams to advise on tactics used by scammers, red flags to watch for, and practical tips to stay safe in the digital age. Guest Speaker: Sallie Kim, Supervisory Counsel at U.S. Securities and Exchange Commission (SEC). Registration TBD.

LICENSEE ACTIVITY

Commercial Bank Activity

New Bank

Altos Bank
467 First Street, Los Altos
Phone #: (888) 512-1632
Officers:
Tom Vertin, Chief Executive Officer
Rudolph Garcia, Chief Credit Officer
Sanjay Mody, Chief Operating Officer
Tom Tolda, Chief Financial Officer
Capitalization$27,780,890.00
Website: https://www.altosbank.com/
Opened: 11/25/24

Merger

Community Bank of the Bay, Oakland, to merge with and into Commercial Bank of California, Irvine
Effected: 11/01/24

Credit Union Activity

Merger

High Sierra Credit Union, Bishop, to merge with and into Desert Valleys Federal Credit Union, Ridgecrest
Approved: 11/30/24
Effected: 11/30/24

Valley Hills Federal Credit Union, San Bernardino, to merge with and into Arrowhead Central Credit Union, Rancho Cucamonga
Approved: 11/01/24
Effected: 11/01/24

Vocality Community Credit Union, Garberville, to merge with and into Community First Credit Union, Santa Rosa
Filed: 10/25/24

Change of Name

Pacific Postal Credit Union, to change its name to F3 Credit Union
Effected: 11/14/24

Premium Finance Company Activity

New Premium Finance Company

Central Premium Finance Corporation
2100 Palomar Airport Road, Carlsbad
Application amended: 10/09/24 – name changed from Central Insurance Finance Corporation
Approved: 11/19/24

Acquisition of Control

DMI Insurance Services, Inc., to acquire control of Insurance Installment Services, Inc.
Filed: 6/28/24
Approved: 10/24/24

Foreign (Other Nation) Bank Activity

Discontinuance

United Overseas Bank Limited
777 South Figueroa Street, Los Angeles (Depository Agency)
Approved: 11/01/24

Money Transmitter Activity

Voluntary Surrender

Circle Payments LLC
Effected: 11/06/24

Currency Cloud, Inc., The
Effected: 11/07/24