New California CFLL and CRMLA Regulations

DBO has adopted final regulations under the California Finance Lenders Law (CFLL) and the California Residential Mortgage Lending Act (CRMLA). These regulations provide that certain nondepository lenders, brokers and servicers who are subsidiaries and affiliates of depository institutions are not exempt from licensure when engaged in the business of making, brokering or servicing consumer loans. Lenders, brokers and servicers affected by the new rules are encouraged to begin the licensing process immediately to ensure they are appropriately licensed when the rules become operative on Sept. 28, 2016.

California Money Transmitter Licensee Signage Change

AB 1517 amended Financial Code section 2105 (a). Effective Jan. 1, 2016, the disclosure required to be posted at agent and branch locations for money transmitter licensees has changed to reflect a new toll free telephone number for contacting the Department of Business Oversight. Per Financial Code section 2105(a) - Each licensee or agent shall prominently post on the premises of each branch office that conducts money transmission a notice stating that: If you have complaints with respect to any aspect of the money transmission activities conducted at this location, you may contact the California Department of Business Oversight at its toll-free telephone number, 1-866-275-2677, by email at consumer.services@dbo.ca.gov, or by mail at the Department of Business Oversight, Consumer Services,1515 K Street, Suite 200, Sacramento, CA 95814.

California Money Transmitter Licenses to Be Managed Via Expanded Participation in NMLS

Effective January 2016, the DBO will begin using the National Mortgage Licensing System (NMLS) to manage money transmitter licenses. NMLS is a secure, web-based, nationwide licensing system that allows companies to apply for, update and renew their licenses in one or more states conveniently and safely. Using NMLS will allow the DBO to improve its operations and better supervise the money transmitter industry by linking to a central database shared with other states. Starting Jan. 15, 2016, the DBO will allow all money transmitter licensees to have a complete record in NMLS and submit the record to the DBO for approval. Starting the same day, any company wishing to apply for a money transmitter license may do so through NMLS. The DBO intends to issue a letter to licensees in December with detailed instructions on how to transition their company to NMLS. http://mortgage.nationwidelicensingsystem.org/Pages/default.aspx

Residential Mortgage Loan Report under the Holden Act due by Mar. 31

Licensees are reminded the state Residential Mortgage Loan Report is due by Mar. 31 for all residential mortgage lenders who do not report to a federal or state regulatory agency as provided by the Home Mortgage Disclosure Act of 1975. Licensees making residential mortgages should consult with their internal compliance officers regarding whether they are required to file the state report.

California Deferred Deposit Transaction Law (CDDTL) Annual Report and Survey Coming Soon

The DBO is preparing to provide payday loan licensees notifications for their annual report and the third Annual California Deferred Deposit Transaction Law (CDDTL) Survey. Every lender licensed as of Dec. 31, 2014 shall file the Annual Report and complete the CDDTL Survey even if they conducted no business in 2014. Both reports will be due on March 15, 2015. These reports are required by Financial Code Section 23026 and 23015. The purpose of the Annual Report and Survey is for the DBO to gather data on transaction activities of licensees to assess the fiscal health and compliance practices of California’s payday lender industry. Responses by the licensees to the Annual Report and Survey will be consolidated into Summary Reports and will be available sometime after June 2015.

2014 Annual Report Form for the California Finance Lenders Law

The 2014 CFL Annual Report Instructions and Forms will be available on the DBO’s website in Feb. 2015. The report no longer will be available in a paper format, only in a downloadable format from the DBO’s website. Completed reports must be uploaded back onto the website. While the format for submitting the report is changing, the data collected will remain the same. The deadline to file the report is Mar. 15.

Assembly Bill 2209-Money Transmitter Receipt Requirements - Effective January 1, 2015

On September 20, 2014, the Governor signed Assembly Bill 2209 (Chapter 499, Statutes of 2014). The bill, among other things, changed receipt requirements for money transmitters. These new requirements become effective January 1, 2015. http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201320140AB2209&search_keywords=