WASHINGTON (5/28/13)--In a Friday comment letter, the Credit Union National Association said it supports the Consumer Financial Protection Bureau's decision to give financial institutions more time to comply with pending credit insurance premium financing prohibitions. However, CUNA also urged the agency to implement certain consumer protections without delay.
The CFPB has proposed delaying the June 1 effective date of the prohibition on creditors financing credit insurance premiums in connection with certain consumer credit transactions secured by a dwelling, and CUNA backed this delay.
The agency has proposed this delay to further revise the regulation, which CUNA Associate General Counsel Jared Ihrig noted "has produced a great deal of confusion among credit union mortgage lenders."
CUNA, however, supports retaining the existing effective date of June 1, 2013, with respect to actual single-premium insurance amounts which are added at loan origination. "We believe this important consumer protection should be made effective as soon as possible," Ihrig wrote.
CUNA also urged the CFPB to delay the effective date of this provision for insurance premium amounts other than actual single premiums until at least Jan. 10, 2014, when the remainder of the mortgage loan originator final rule is slated to take effect.
For the full comment letter, use the resource link.