In 2010, CUNA had asked the Fed to drop the proposals and to impose a moratorium on further Fed rulemaking that will be under the authority of the Consumer Financial Protection Bureau starting Jul. 21, 2011.
One of the proposals that has been dropped included very onerous provisions that would have jeopardized credit protection insurance products such as credit life, disability, debt cancellation, debt suspension and similar products that provide important benefits to credit union members. The other proposals dealt with closed-end mortgage loans and home equity lines of credit.
The League is pleased about this announcement which CUNA worked to pursue but it is important League members know how important our credit union comment letters on these issues were in helping to persuade the Fed to back off on these proposals. In addition, commendations are extended to CUNA Mutual for its efforts, which they coordinated with Leagues and CUNA, particularly regarding the proposal on credit protection products.
For questions about the announcements, contact LSCU VP, Regulatory Affairs
Bill Berg at 866.231.0545 ext. 1028 or Director, Compliance
Scott Morris at ext. 2165.