Monthly Bulletin – July 2024

Myriam Valdez-Singh Appointed DFPI Deputy Commissioner for Legislation

On June 18, Myriam Valdez-Singh, of West Sacramento, was appointed Deputy Director of Legislation at the California Department of Financial Protection and Innovation by Governor Gavin Newsom. She began her service with DFPI on July 1 in the Sacramento office.

Valdez-Singh has served as a Deputy Appointments Secretary in the Office of Governor Gavin Newsom since 2021. She was Legislative Director in the Office of State Senator Melissa Hurtado from 2019 to 2020. Valdez-Singh was a Legislative and Policy Advocate at Health Access California from 2017 to 2019. She served as a Legislative Aide in the Office of State Senator Holly Mitchell from 2015 to 2017 and in the Office of State Senator Hannah-Beth Jackson from 2013 to 2015, where she was a Senate Fellow from 2012 to 2013.

Valdez-Singh earned a Bachelor of Arts degree in Political Science from California State University, Bakersfield and a Master of Public Administration degree from the University of Southern California.

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2024-25 Assessment Rates for Credit Unions and Money Transmitters

On June 28, invoices for the 2024-25 annual assessment were emailed to credit unions and money transmitters. Licensees that did not receive their invoices should notify the Accounts Receivable Unit at [email protected] as soon as possible.

Invoices are payable on or before Aug. 1, with more time allowed for payments made via electronic funds transfers (EFT). EFT payments are due by Aug. 8.

Credit Unions: The base rate was set at $1.00 per $1,000 of assets, a $0.01 increase from last year’s rate of $0.99.

Money Transmitters: The assessment rate was set at $0.015 per $1,000 received for transmission by a licensee in calendar year 2023, an increase of $0.002 from last year’s rate. The assessment rate for issuers of payment instruments and stored value was set at $0.63 per $1,000 of total payment instruments and stored value sold by a licensee. The rate has not increased since 2012.

For questions about the calculation of an assessment, please refer to “How to Calculate Your Assessment” or email [email protected]. Questions regarding assessment payment processing should be directed to the Accounts Receivable Unit at [email protected].

Silvergate Bank Penalized Following Coordinated DFPI and Federal Investigations

On July 1, the California Department of Financial Protection and Innovation (DFPI) announced a consent order as part of a combined $63 million penalty against La Jolla-based Silvergate Bank, its holding company (collectively Silvergate), and certain executives. The DFPI investigation found deficiencies in Silvergate’s internal transaction monitoring.

The DFPI consent order was issued in coordination with a parallel consent order by the Board of Governors of the Federal Reserve System (Federal Reserve Board) and penalty assessments by the U.S. Securities and Exchange Commission (SEC). The penalty amount consists of a payment of $20 million to be paid to the DFPI, a payment of $43 million to the Federal Reserve Board, and penalties of $50 million assessed by the SEC that will be offset by Silvergate’s payments to the DFPI and the Federal Reserve Board.

Additionally, the SEC also announced that it charged Silvergate Capital Corp., the Bank’s holding company, its former Chief Executive Officer Alan Lane and its former Chief Operating Officer Kate Fraher for violating federal securities laws.

Silvergate has been a California-chartered bank since 1988. Beginning in 2014, Silvergate shifted from traditional community banking to servicing foreign and domestic digital financial asset companies, such as cryptocurrency exchanges. These services provided a critical link between crypto assets, such as Bitcoin, and access to the U.S. dollar.

On March 8, 2023, Silvergate’s holding company announced its intent to voluntarily liquidate Silvergate Bank. The DFPI and Federal Reserve Board issued a joint cease and desist order on May 23, 2023, to facilitate the implementation of Silvergate Bank’s voluntary liquidation plan.

Silvergate is required to preserve for the next seven years all records of financial activity. Agencies seeking records held by Silvergate are asked to direct their requests to:

Michael Levy
Ellerman Enzinna Levy PLLC
1050 30th Street NW
Washington, District of Columbia 20007
[email protected]

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​DFPI Alert on Patelco Credit Union Cyberattack

On July 2, The California Department of Financial Protection and Innovation (DFPI) posted a consumer alert reporting that the DFPI had been made aware that Patelco Credit Union was subjected to a ransomware attack on Saturday, June 29, 2024. This cyberattack caused the credit union to shut down some of its day-to-day operations to get the situation under control.

Patelco Credit Union has provided notices on its website, patelco.org to provide members updates on this issue, which includes a list of services available. Patelco branch offices and its call center remained open to provide member services.

Some Escrow Reports Due July 15

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 March 31, 2024, your annual report is due July 15, 2024. Please have your CPA email your report to [email protected].gov 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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Cybersecurity Best Practices Webinar for Mortgage Licensees

On July 24, the DFPI will host a webinar titled “Best Practices in Cybersecurity”. Invitations have been sent to DFPI’s mortgage licensees.

The webinar is hosted by Senior Deputy Commissioner Greg Young and Deputy Commissioner Sheila Oliver. The guest speaker at this webinar is Michael Sohn who is currently assigned to the Los Angeles Cyber Task Force. His investigative experience includes cyber terrorism, nation-state and criminal cyber intrusion matters. Prior to his employment with the FBI, he worked as a Cyber Counterintelligence Officer for the Department of the Army, a Counter Terrorism officer for the Defense Intelligence Agency, a consultant at Booz Allen Hamilton and a U.S. Army Officer.

Invitation for Public Comment on Proposed NMLS Fee Increases

On July 2, 2024, the Department of Financial Protection and Innovation gave notice of a Comment Period for Third Modification to Proposed Regulations  regarding registration requirements for covered persons under the California Consumer Financial Protection Law (CCFPL); requirements for exemption from registration for licensees under the California Financing Law (CFL), California Deferred Deposit Transaction Law (CDDTL), and Student Loan Servicing Act (SLSA); and regulation of certain advances under the California Financing Law.

The Department of Financial Protection and Innovation is extending the deadline to submit comments to Wednesday, July 24, 2024.

Submit comments by either of the following methods:

• By email to [email protected]. Include “PRO 01-21” in the subject line. Comments submitted as attachments in Microsoft Word format (.docx) are preferred.
• By postal mail to:

Department of Financial Protection and Innovation 
Attn: DeEtte Phelps 
2101 Arena Boulevard 
Sacramento, California 95834 

The notices and draft text may be found here or at the links below:

• PRO 01-21 – Notice of Extension of Comment Due Date to July 24, 2024 (PDF)
• PRO 01-21 – Notice of Third Modification to Proposed Rulemaking (PDF)
• PRO 01-21 – Third Modified Text of Proposed Regulations (PDF)*
• PRO 01-21 – Third Modified Text of Proposed Regulations (PDF)**

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Consumer Webinar Aug. 7

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 channelopens in a new window.

The next webinar, “Protecting Your Personal Data,” is scheduled for August 7 at 3 p.m., PST (Registrationopens in a new window).

This webinar will feature as guest speakers representatives from the California Privacy Protection Agency (CPPA) privacy.ca.govopens in a new window.

AARP and DFPI Partner for “Scam Chat Wednesday” Webinars

In August, the DFPI will co-host a weekly “Scam Chat Wednesday” webinar with the California chapter of the American Association of Retired Persons (AARP).

Join the DFPI and AARP California to learn how you can stay safe from financial fraud and scams. Visit the DFPI events page for more information on this and other webinars.