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Rules committee advances Casey Mosseini to lead Department of Financial Protection and Innovation amid funding and enforcement questions
Summary
The Rules Committee approved Commissioner‑designate Casey Mosseini 3-0 to move to the full Senate. Mosseini discussed DFPI’s staffing, fee study and oversight role as federal consumer protections shift; multiple industry and consumer groups voiced support.
The California State Senate Rules Committee voted 3-0 to advance the nomination of Casey Mosseini to serve as commissioner of the Department of Financial Protection and Innovation, sending the nomination to the full Senate for consideration.
Mosseini, who has served as DFPI’s chief deputy commissioner since 2023 and previously as chief operating officer in the state controller’s office, told the committee he supports clear goals, measurable outcomes and sound fiscal management at the agency. “DFPI has an exciting future and I feel privileged to lead our efforts to promote safety and soundness in our financial institutions,” Mosseini said during his opening remarks.
Committee members focused questions on the department’s ability to sustain consumer protection work as federal oversight changes. Senator Reyes raised recent shifts at the federal Consumer Financial Protection Bureau and asked how the DFPI will be affected. Mosseini said DFPI operates in a “co‑regulated space” alongside the CFPB, Federal Reserve and FDIC and that recent developments have impacted the CFPB’s ability to operate. He said California has “a number of new tools in our toolkit and resources primarily under the California Consumer Financial Protection Law,” and that DFPI is well positioned to continue its mission.
Mosseini described steps toward fiscal stability at DFPI. He said the department’s vacancy rate is below 8 percent and that an external vendor, Crowe LLP, completed a fee study to analyze program revenues and expenditures. Mosseini said the study informed a legislative proposal that “was signed into law last month,” and that DFPI is implementing the changes. He explained that DFPI’s Financial Protection Fund is supported by licensing programs, examination fees and annual assessments, and that older programs needed fee adjustments because fees had not been revisited for decades.
Senators pressed Mosseini on potential side effects of fee increases, including whether higher costs could push state‑chartered banks to seek federal charters. Mosseini said DFPI has discussed the issue with banking groups and that, even after increases, state charter exam rates and fees remain competitive with federal counterparts, citing DFPI’s current exam-hour rate versus the Office of the Comptroller of the Currency.
The hearing included an extended public‑comment period with broad support from consumer groups, community lenders and industry trade associations. Supporters on the record included the Consumer Federation of California; Affirm and Earnin (represented by Capital Advocacy); Cameo Network; California Mortgage Bankers Association; California Community Banking Network; California Association of Collectors; California Credit Union League; Center for Responsible Lending; and others. Robert Harrell of the Consumer Federation of California said the federation “is in support of Commissioner Mosseini’s confirmation” and praised DFPI’s engagement with community partners. Several business‑sector groups and fintech representatives also voiced support for Mosseini’s confirmation.
After questions and public comment, the committee voted to advance Mosseini’s nomination by a 3-0 roll call. Committee members said Mosseini’s combination of operations experience and openness to stakeholder engagement positions DFPI to continue oversight as federal enforcement shifts.
The nomination will now go to the full Senate for a confirmation vote.
