Message from the Commissioner

The year 2012, my first year as Commissioner, was challenging, very exciting and productive. I am extremely proud of the accomplishments of the Department of Financial Institutions. Through the hard work of our professional and dedicated staff, our industry leaders and community partners, we have achieved numerous important accomplishments.

DFI’s mission is to protect and serve the people in California through the effective regulation and supervision of state-chartered financial institutions. We also have an array of vital programs to protect consumers. The following is a brief list of activities and accomplishments that further our mission. DFI published a complete list of 2012 Accomplishments and a 2012 Annual Activity Report that further describes the Department’s activities and the health and growth of state-chartered financial institutions.

Here are some highlights:

Licensing

One national bank and one federal savings bank converted to a DFI state charter:

  • CommerceWest Bank
  • First Foundation Bank

The DFI Money Transmitter Program issued new money transmitter licenses to the following 17 companies:

  • Beamit, Inc.
  • CheckFreePay Corporation
  • Choice Money Transfer, Inc.
  • Commonwealth Foreign Exchange, Inc.
  • Custom House (USA) Ltd. Dba Western Union Business Solutions
  • Facebook Payments Inc.
  • InteliSpend Prepaid Solutions, LLC
  • ITC Financial Licenses, Inc.
  • JPay Inc.
  • Keefe Commissary Network, LLC
  • Kwik Dollar LLC dba DINEX
  • Meracord LLC dba Meracord
  • Netspend Corporation
  • Official Payments Corporation
  • Softgate Systems of California, Inc.
  • USFOREX Inc.
  • Venmo, Inc.

Sixteen money transmitter applications were approved:

  • Ace Payment Services, Inc.
  • ADP Payroll Services, Inc.
  • Beamit, Inc.
  • Choice Money Transfer, Inc.
  • Facebook Payments Inc.
  • InteliSpend Prepaid Solutions
  • ITC Financial Inc (ITCFL)
  • Kwik Dollar LLC dba DINEX
  • Meracord LLC dba Meracord
  • Metavante Payment Services, LLC
  • Netspend Corporation, Austin
  • Obopay, Inc.
  • Square, Inc.
  • TouchPay Holdings, LP
  • USFOREX Inc.
  • Venmo, Inc.

Eleven applications were filed:

  • Beamit, Inc.
  • FIRMA Foreign Exchange Corporation (U.S.) Ltd.
  • GoPago, Inc.
  • Intuit Payments Inc.
  • Kwik Dollar LLC dba DINEX
  • Moneydart Global Services, Inc.
  • Netspend Corporation
  • PayNearMe Plus, Inc.
  • PreCash, Inc.
  • Square, Inc.
  • TouchPay Holdings, LP

In 2013 year to date, one money transmitter has opened:

  • Square, Inc.

 

Examination

  • The Bank Examination Program completed 81 safety and soundness bank examinations.
  • The Credit Union Examination Program completed 79 safety and soundness credit union examinations.
  • The Money Transmitter Program conducted 26 full scope money transmitter examinations and over 200 on-site agent examinations. Fifteen were joint examinations performed with other states, which is a record number and twice the number conducted in 2011.

 

Enforcement Actions

  • The DFI Bank Examination Program issued 24 bank enforcement actions, including six Cease and Desist (C&D) orders, three Board Resolutions (BR), and 15 Memorandums of Understanding (MOU). Thirty-four bank enforcement actions were lifted, including 12 Cease and Desist (C&D) orders, four Board Resolutions (BR), and 18 Memorandums of Understanding (MOU).
  • The DFI Credit Union Examination Program issued seven enforcement actions and lifted 17 enforcement actions.
  • The DFI placed Telesis Community Credit Union into conservatorship in March and liquidated the credit union in June.
  • The Money Transmitter Examination Program issued nine enforcement actions, including five MOUs, three Board Resolutions, and one C&D.

 

Consumer Complaints and Inquiries

  • DFI processed 534 complaints. Ninety-one percent of the complaints were processed in less than 26 days. There were 137 complaints regarding banks; 282 regarding credit unions and 115 regarding money transmitters. DFI handled 2,907 inquiries, including 1,775 regarding non-DFI licensees, which were referred to the appropriate regulator. Consumers who filed complaints received an aggregate of $30,412.43 in reversed fees, charges and payments.

 

Elder Financial Abuse Outreach

  • DFI served on the Elder Financial Abuse Interagency Roundtable hosted by the California Insurance Commissioner’s Office. The Roundtable members launched a senior Web portal in October 2012. The Senior Gateway empowers seniors, their families, and caregivers with news, information, services and resources.
  • DFI also participated in events and actively promoted the awareness and prevention of elder financial abuse.

 

Community Outreach

 

Bank On California

  • Bank On California, under DFI’s leadership, expanded with Bank On Stanislaus in 2012. The program is now available in Amador, El Dorado, Placer, and Yolo counties through an expansion of Bank On Sacramento. There are now eight Bank On California coalitions: Fresno, Los Angeles, Oakland, Orange, Sacramento (includes Yolo, Placer, Amador and El Dorado), San Francisco, San Jose and Stanislaus.
  • Over forty financial institutions are participating in the Bank On California program. Half of the participating financial institutions are state-chartered banks and credit unions licensed and supervised by DFI.
  • Other regions are reaching out to DFI for guidance as they research a Bank On for their community.

 

Foreclosure Outreach

  • DFI’s education and outreach program participated in homeownership events throughout the state. We also disseminated consumer brochures related to foreclosure prevention and homeownership published by the federal bank regulators, who regulate the large banks and mortgage servicers.
  • We used the Web and social media to share important information about free and safe government programs and services and events. We added DFI Homepage links to CalHFA’s Keep Your Home California, the Treasury and HUD’s Making Home Affordable, and the National Mortgage Settlement.
  • DFI’s financial education blog frequently featured news, alerts and other important information regarding homeownership and foreclosure programs as well as foreclosure-related fraud prevention.

 

Financial Education Portal

 

Social Media

  • DFI’s education and outreach program used social media to reach a larger and broader audience. DFI has over 2,000 Twitter followers and tweeted over 2,000 messages in 2012. DFI’s financial education blog has reached almost two million people since it was launched in August 2010.

My priorities for DFI in 2013 are to continue to (i) preserve the integrity of the financial system in California and ensure the public’s trust and confidence by promoting the safety and soundness of the state’s chartered depository institutions, (ii) encourage participation by DFI’s state chartered banks and credit unions and to support the expansion and implementation of Bank On California in additional cities and counties throughout the state, (iii) protect the consumer through the enforcement of applicable state and federal laws and regulations and the supervision of enterprise risk management at DFI’s licensees and (iv) work with DFI’s licensees to combat elder financial abuse.

Of course, these priorities are only a small fraction of all the work we do at DFI and within each of our programs and regional offices we have many other priorities that are extremely important.

I know that this year will be full of successes for DFI and state-chartered financial institutions. I hope you will continue to follow our initiatives and accomplishments in the months ahead through the Monthly Bulletin, following DFI on Twitter and Facebook, subscribing to our blog and regularly visiting us on the Web.
I look forward to a successful 2013 together.

Sincerely,

Teveia R. Barnes, Commissioner
Department of Financial Institutions
45 Fremont Street, Suite 1700
San Francisco, CA 94105
(415) 263-8507
Teveia.Barnes@dfi.ca.gov