The CFPB announced that it will delay the effective date of the credit insurance provision of the loan originator compensation rule until January 10, 2014. The rule was originally scheduled to take effect June 1.
This delay will enable the CFPB to consider carefully the inclusion of monthly premium structures in a ban on financed premiums, which the industry has long interpreted to include only single-premium payments that were rolled into the loan principal. Monthly paid premiums are commonly sold by banks, and it would be challenging -- if not impossible -- to unwind such programs by June 1, ABA and its ABIA subsidiary said in a comment letter last Thursday.
Read the rule.