Rules committee forwards Casey Mosseini to full Senate as DFPI commissioner after hearing on consumer protection, student loans and agency funding

The California State Senate Rules Committee advanced Casey Mosseini’s nomination to lead the Department of Financial Protection and Innovation, voting 3-0 to send the confirmation to the full Senate.

Mosseini, who has served as DFPI chief deputy commissioner and as the department’s acting head, described agency priorities including regulatory supervision, enforcement and consumer outreach. He told the committee that DFPI’s strategic plan focuses on strengthening the financial services ecosystem, driving operational excellence, expanding reach and advancing economic security for Californians.

Committee members questioned Mosseini about the impact of changes at the federal level — including recent shifts affecting the Consumer Financial Protection Bureau — on DFPI’s ability to protect Californians. Mosseini said DFPI is “very well positioned” under the state’s California Consumer Financial Protection Law to continue oversight and enforcement and that the department has partnered with the CFPB and other federal regulators on joint investigations and examinations in the past.

On student loans, Mosseini described DFPI’s student loan ombuds function and said the department maintains a dedicated oversight program for student‑loan servicers in California. He warned that ongoing federal changes and personnel turnover at the U.S. Department of Education have created confusion and made consistent coordination more difficult, and he said DFPI is monitoring developments and working to provide accurate guidance to borrowers.

Mosseini also reviewed DFPI’s fiscal position and staffing. He said the department has grown about 30% since the 2021 California Consumer Financial Protection Law created DFPI from the successor Department of Business Oversight and that the department’s vacancy rate is “less than 8%” following recent hiring. He described a fee study conducted with an external vendor (Crowe LLP) that led to legislative proposals signed into law to adjust licensing and assessment fees and improve the department’s fiscal sustainability.

Senators asked about the potential effect of higher state assessments on state‑chartered banks and whether increased fees could push banks to seek federal charters. Mosseini said DFPI compares its fee schedule and exam rates to federal regulators and believes DFPI remains competitively priced; he said fee increases were being phased in and that the department continues dialogue with industry stakeholders.

Dozens of witnesses and organizational representatives testified in support of Mosseini during public comment, including consumer advocacy groups, community lenders and industry trade associations. Supporters cited Mosseini’s engagement with community groups, his openness to stakeholder feedback and DFPI’s role as a state regulator filling a gap left by recent federal changes. Organizations on the record in support included the Consumer Federation of California, Center for Responsible Lending, California Credit Union League, California Bankers Association, California Mortgage Bankers Association, Oportun, the American Fintech Council, and multiple business and community groups.

After public testimony, the committee moved and recorded a roll call; Senators McGuire, Laird and Reyes voted aye. The committee reported a 3‑0 vote forwarding the nomination to the Senate floor for final confirmation.