Comments due May 25 on CFPB Credit Insurance Rule Delay—CUNA News Now, May 13
Parties interested in commenting on a proposed delay of the June 1 effective date relating to a prohibition on financing certain credit insurance charges must have their opinions to the Consumer Financial Protection Bureau (CFPB) by May 25.
In early May, the CFPB announced it would seek comment on a proposed delay of the June date. A May 10 Federal Register document set the comment date.
The CFPB's mortgage loan originator compensation rule contains a provision, as required by the Dodd-Frank Act, which bans the financing of any premiums or fees for payment protection products in connection with certain consumer credit transactions secured by a dwelling. The rule does allow the products to be calculated and paid for in full on a monthly basis.
To ease compliance and help avoid unneeded costs, the Credit Union National Association had urged the CFPB to delay the effective date of any provisions of the final rule that would impact products other than actual single-premium credit insurance, as well as any future rule that will address these issues, until January 10, 2014. Most of the rest of the mortgage loan originator compensation rule is set to take effect at that time.