The New California Consumer Financial Protection Law
A new Assembly Bill 1864 was published on 9/29/2020. It was passed as a trailing bill on the Budget Process so it went through fast. It will go into effect on Jan. 1, 2021. But another little bill was also passed to change the name of the DBO (Department of Business Oversight) to DFPI (Department of Financial Protection and Innovation) effective immediately.
Here are three links; and they should answer some preliminary questions.
From Shelly Wilson of DRE
Note she is quoted in the article. https://reversemortgagedaily.com/2020/10/08/new-california-cfpb-style-agency-will-not-have-authority-over-reverse-mortgage-industry/
Bulletin from DFPI
The Bill Itself
It is my opinion based on nothing concrete that this does not change much of the current procedures for education and pre-licensing. Time will tell. Check 90002 (a) for a comment on this.
This is not a small endeavor. THEY expect up to 90 employees (that is government talk for a future staff of 900 as they missed a zero at the beginning) and an expected yearly cost of $19.3 million. Since there are about 40 million in California, this will cost you about $.50 a year if prorated properly.
Note: In the DFPI bulletin there is mention of another bill: SB908 to license debt collectors and buyers.
Here is a sentence from an email that I just received from Shelly Wilson, Public Information Officer and Chika Sunquist, Head of Mortgage Lending. They should know. “With the implementation of AB 1864, no changes are anticipated to the Department of Real Estate. More information will be published in the next Real Estate Bulletin.”
Any comments, corrections or complaints, please send them now.