CFPB to delay portion of LO Comp final rule

The Consumer Financial Protection Bureau plans to delay the compliance date for a provision of its loan originator compensation final rule that prohibits creditors from financing premiums for credit insurance products in connection with certain consumer credit transactions secured by a dwelling. While most of the loan originator compensation rule will take effect in January 2014, the ban related to financing credit insurance would have taken effect on June 1. Read on to learn why the CFPB is seeking the delay.