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Thursday, October 3, 2013

Are You In Compliance with CFPB’s Final Rule Prohibiting Financing of Credit Insurance & Debt Protection with Mortgages?

By ABIA Outside Counsel Chrys Lemon and Adam Maarec, McIntyre & Lemon, PLLC

The Dodd-Frank Wall Street Reform and Consumer Protection Act included a provision that prohibits the financing of credit insurance premiums and debt protection product fees. The Consumer Financial Protection Bureau (CFPB) issued rules implementing the ban in connection with its loan originator compensation rule, but after the industry raised interpretive questions related to the rule’s potential application to monthly-paid products, the Bureau re-proposed the rule. The ABIA commented on the CFPB’s second proposed rule in a joint letter with seven other trade associations.

Click here for an ABIA members-only review of the CFPB’s final rule on the prohibition of financing credit insurance premiums and debt protection fees in connection with mortgages. If you are having trouble logging on or you are with a member that in not a bank, please contact us and we will email you a copy.

ABIA members may access a wealth of compliance information - including our flagship Compliance Handbook on our compliance page. If you need help logging on please contact us and we will be happy to assist you.