A quickly approaching June 1 deadline to comply with new rulesthat prohibit charges related to single-premium credit insurance hasprompted CUNA to ask the Consumer Financial Protection Bureau for anextension.

CUNA said it supports the Dodd-Frank mandated prohibitionagainst the financing of actual single-premium creditinsurance.

However, CUNA President/CEO Bill Cheney told CFPB DirectorRichard Cordray in the April 19 letter that language included inthe Supplementary Information, which was not included in theproposed rule, is unclear and appears to prohibit the addition ofany monthly charge for the insurance to the loan balance.

“This practice appears to be fairly common among credit unionmortgage lenders as a number of credit unions' data processingsystems add the insurance premium amount to the loan balance on amonthly basis and as a result, it will be quite costly for thenecessary changes to be made by June,” Cheney wrote.

The CFPB is already planning to release a new proposed rule onthe subject that addresses the language issues, Cheney said in theletter.

In light of that, the trade requested a delay in the effectivedate of any provisions that could impact products other than actualsingle-premium credit insurance. Cheney suggested a target date ofJan. 10, 2014, when the majority of the CFPB's mortgage loanoriginator compensation rule takes effect.

NAFCU has suggested, as part of its five-point regulatory reliefplan,granting the NCUA the authority to delay rule implementation forcredit unions, as well as the ability for the NCUA to tailor CFPBrules to better accommodate the unique structure of creditunions.