Calif. Could Soon Create ‘Mini-CFPB’: 5 Things To Know

  • Source:

Treliant Takeaway:

Treliant’s Mortgage Operations and Compliance practice stands ready to assist you as you navigate ever-changing regulations and resulting mortgage requirements.  From transaction level through transformation, Treliant’s well-seasoned professionals can help.  As states continue to expand regulatory supervision, now is the time to document and test to ensure that your actions and outcomes are compliant.

Article Highlights:

California state lawmakers passed legislation that would transform the state’s financial services regulator, the Department of Business Oversight (DBO).

The new entity, subject to the state governor’s approval, would be known as the Department of Financial Protection and Innovation (DFPI) and has drawn comparisons to the Consumer Financial Protection Bureau (CFPB). New authorities, modeled on Dodd-Frank, that may be included in the new entity include:

  • Increased focus on fintech
  • Focus on consumer financial products and services
  • New abilities to regulate debt collectors, consumer reporting agencies, fintech companies and other companies not previously under DBO’s authority
  • The addition of cryptocurrency to regulated products
  • Expansion of state authority to bring UDAAP actions, including adding an abusiveness prong to UDAP laws
  • Ability to regulate non-banks offering financial products and services