Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
CFPB Proposes CUNA-sought Credit Rule Delay
WASHINGTON (5/9/13)--The Consumer Financial Protection Bureau has favorably responded to the Credit Union National Association's recent request that the agency delay a June 1 effective date relating to the prohibition on financing certain credit insurance charges. The provision is contained within the bureau's mortgage loan originator compensation rule.

The CFPB told CUNA it will seek comment for 15 days on a proposed delay.

CUNA had expressed concern that certain language within the new rule needed clarification, and that a June 1 effective date of this prohibition could upend practices at some credit unions. However, CUNA does not support the financing of actual single premium insurance charges.

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, CUNA 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 Jan. 10, 2014.  Most of the rest of the mortgage loan originator compensation rule is set to take effect at that time.


RSS print
News Now LiveWire
.@USATODAYmoney @fileneresearch pre-retirement capability study http://t.co/xvXqwKEbjj. See #NewsNow for report recap http://t.co/pUXrSQFlju
56 minutes ago
.@fairwindscu @UCF neck and neck in @OBJUpdate #BrandMadness http://t.co/D8YrKamEX7
1 hours ago
.@TheNCUA to consider separate IRR proposal in response to RBC comments See #NewsNow http://t.co/m7fJcPCmzQ
1 hours ago
You get an extra hour this weekend. How to use it? Try these 12 money tasks via @MainStr http://t.co/wtv5qDkELD
2 hours ago
#Halloween, #creditunions, a boo-tiful pair #NewsNow http://t.co/h0ZfAcN9PW
2 hours ago