Alert June 11, 2013

CFPB Finalizes Implementation Delay of Prohibition on Financing of Credit Insurance

The CFPB issued a final rule delaying the June 1, 2013 effective date of the prohibition on creditors financing credit insurance premiums in connection with certain consumer credit transactions secured by a dwelling, which was originally adopted in its final rule governing practices for the origination of consumer mortgage loans in January 2013 (see January 22, 2013 Alert). The CFPB originally proposed a temporary delay of the effective date only for as long as necessary for any clarifications to be proposed, finalized and implemented (see May 14, 2013 Alert). The final rule sets January 10, 2014 as the new effective date.