Everything You Need to Know About the Name Change for the California Department of Business Oversight
The California Department of Business Oversight (DBO) has been renamed the California Department of Financial Protection and Innovation (DFPI), in accordance with the California Consumer Protection Act. Along with the name change, the department will have new and expanded responsibilities. Though the bill was first introduced in January 2020, the changes will take effect in January 2021.
The goal of these changes is to protect Californians while allowing reputable businesses to maintain their operations. According to DBO commissioner Manual Alvarez, there has been a spike in scams and predatory lending as a result of the COVID-19 pandemic.
Lourdes Castro Ramírez, secretary of the California Business, Consumer Services and Housing Agency, added California’s wildfires as another source of economic losses making people vulnerable to predatory financial products. The changes to the DBO will give greater protection to those seeking financial support, and help them avoid predatory practices and scams.
Former Responsibilities of CA Business Oversight
The Department of Business Oversight was formerly responsible for regulating financial institutions like banks, mortgage lenders, and credit unions. The department enforced laws related to these companies and made sure dishonest or abusive businesses faced civil action.
New Responsibilities of DFPI
Along with overseeing banks, credit unions, escrow companies, and other financial institutions, the DFPI will also expand to regulate debt collectors, credit reporting companies, and FinTech companies. A new segment of the DFPI will also be added to monitor and research new financial products on the market. These changes have been made with the hope of bolstering financial innovation.
Learn More from Mortgage Educators
*Note: 1-hour CA DFPI elective education requirement is still needed for license renewal.
If you are a mortgage lender or business owner in the financial sector, the changes to the CA Business Oversight Department may affect you. Check out Mortgage Educators to learn more about the new responsibilities of DFPI and what it might mean for your business.
Mortgage Educators and Compliance is here to answer any additional questions that you may have in regards to your California mortgage license. For additional questions, feel free to call us at (801) 676-2520 or email us at 20hour@MortgageEducators.com.