The Consumer Financial Protection Bureau has issued a proposed rule and request for comment regarding a temporary delay in the June 1 effective date of a final rule provision that would prohibit the financing of credit insurance into a mortgage.
Provision was to take effect on June 1. CUNA has asked for extension until January.
New rules to prohibit charges related to single-premium credit insurance now banned by Dodd-Frank.
While credit insurance and debt protection have been long-time staples for credit unions as part of their loan add-on product suites, some experts noticed that they are becoming more of a priority as the industry continues to seek new noninterest income streams.