The Consumer Financial Protection Bureau proposed some tweaks and clarifications to its January 2013 mortgage rules on June 24, addressing some credit union concerns.
The seven clarifications include a proposed change regarding the ban on financing credit insurance premiums, including in the CFPB's mortgage originator compensation rule. The provision's language was considered vague because it could potentially be applied to transactions other than the single-premium credit insurance premium it was intended to address.
The proposal would clarify what constitutes financing of credit insurance premiums by a creditor – particularly as the rule applies to "level" or "levelized" premium – where the monthly premium is the same each month rather than decreasing along with the loan balance.
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