I just received something from GMAC Mortgage that states that for loans in Massachusetts you can't include Patriot's Day as a rescission day for refi's. I don't think I have run across this before. Any insight???

The question is whether Patriot's Day is a "legal holiday under the laws of the Commonwealth." (209 CMR 32.02(1))

The Division of Banks lists Patriot's Day as one of the Commonwealth's legal holidays, but banks may be open at their option. I believe that Patriot's Day should not be counted as a business day for the purposes of the right of rescission by those lenders that are subject to the state's truth in lending law.

For federally-chartered institutions, I believe that Regulation Z will control, and Patriot's Day would be counted as a business day for rescission purposes.

Thanks John. That's what I thought. We are federally chartered and never had to "observe" Patriot's Day before.(Although I could use a day at the beach!!!)

I'll add a little to my earlier thoughts. You can rarely get into trouble extending a rescission period too far. But you can easily risk problems if you cut it short. Not counting Patriot's Day as a business day for rescission only risks aggravating your customer with a delay. But as a federally-chartered institution, you can do it either way.

Thanks. We are going to add the extra rescission day just to be safe. We'll no doubt annnoy more than a few customers!!

I think it's probably a good CYA -- cover your assets -- move.

Think Spring and sunshine!