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CFPB to Delay Credit Insurance Premium Rule – IBA Compliance Connection

CFPB to Delay Credit Insurance Premium Rule

The Consumer Financial Protection Bureau (CFPB) has issued a proposed rule to temporarily delay a prohibition on financing single-credit insurance premiums. The rule was scheduled to become effective on June 1, but the CFPB seeks comment on a delay of the rule, which will allow it to clarify when a creditor can charge credit insurance premiums on a periodic basis (rather than in one lump sum at the loan closing). The Bureau plans to propose a new rule to clarify these requirements in June, with a new effective date for the rule. However, the related loan originator compensation rules will go into effect, as planned, on June 1.