Effective Date for Prohibition on Financing Single-Premium Credit Insurance Delayed

On May 29, 2013, the CFPB issued a final rule to delay the effective date of the prohibition on financing single-premium credit insurance from June 1, 2013, to January 10, 2014.  This prohibition applies to closed-end transactions secured by a dwelling and open-end plans secured by a consumer’s principal dwelling.

The Bureau intends to use the time to clarify how the prohibition impacts transactions other than those in which a lump-sum premium is added to the loan amount.  The Bureau plans to issue a proposal for public comment shortly.

Published
2013/05/31
Diane Dean
Diane Dean

Diane Dean

Diane joined Banker’s Compliance Consulting with over 10 years of compliance experience and over 15 years of experience within the financial industry. Diane is a Certified Regulatory Compliance Manager (CRCM) and has a Bachelor’s Degree in Sociology with a concentration in Criminal Justice. She is a graduate of the Schools of Banking Compliance School and has participated in various other training opportunities throughout her career. Diane understands firsthand the struggles banks face in building and maintaining successful compliance programs. Her experience and common sense approach to consumer compliance is a great asset to our clients. Diane and her husband have two kids who keep them busy. She enjoys running and other sports and is a big Bugs Bunny fan! She’s a bit crazy in that she does enjoy reading some of these regulations and she’s a “crazy cat lady!” Her cat tales are hilarious!

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