The Consumer Financial Protection Bureau (CFPB) has announced an interpretive rule to help the mortgage industry determine whether the community should treat June 19, 2021 (June) as a federal holiday or a business day, as agents must comply protections for time-sensitive borrowers. .
“Federal recognition and celebration of Juneteenth was a welcome and important step towards healing the national legacy of slavery,” said CFPB Acting Director Dave Uejio.
CFPB Mortgage Rules Regulation Z sets time limits, calculated in business days, when borrowers are to receive disclosures or when borrowers have the right to cancel a mortgage. Many in the mortgage industry were unsure of how to deal with the new June 19 public holiday when it was enacted just two days before the holiday.
“We understand that the early enactment of federal legislation on June 17 created questions of interpretation and compliance challenges for the mortgage industry with respect to the cancellation of closed-end mortgages and certain urgent mortgage disclosures. The mortgage industry can refer to today’s rule of interpretation to determine how to deal with June 19, 2021, ”Uejio added.
For short-term mortgages and TILA-RESPA integrated disclosures, whether June 19 is considered a federal holiday depends on when the relevant period begins. If the relevant period began on or before June 17, 2021, then June 19 was a business day. If the relevant period began after June 17, 2021, then June 19 was a federal holiday.
However, creditors are not prohibited from providing longer time limits than required, so they can consider June 19 to be a federal holiday. Federal Compliance Day, June 18, is considered a business day for time sensitive consumer protections.