The Consumer Financial Protection Bureau is asking the industry for feedback on a proposed delay of a new Dodd-Frank act provision related to credit insurance premiums.
The CFPB issued new mortgage rules tied to the Dodd-Frank Act in January, with most expected to take effect in January 2014.
However, the agency slated a few of the rules to take effect in June and is now asking for feedback on at least one proposed delay.
The agency issued a proposal seeking comment on whether a rule prohibiting creditors financing credit insurance premiums on certain consumer transactions secured by a dwelling should be delayed.
The rule was adopted in the Loan Originator Compensation Requirements under the Truth in Lending Act (Reg Z) final rule.
"The bureau is concerned that, if the effective date is not delayed, creditors could face uncertainty about whether and under what circumstances credit insurance premiums may be charged periodically in connection with covered consumer credit transactions secured by a dwelling," the proposal noted.
"The bureau believes this could result in a substantial compliance burden to industry."