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#2255527 - 06/17/21 09:14 PM Juneteenth & Rescission/CD and LE Timing
Wonderofitall Offline
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Wonderofitall
Joined: Sep 2010
Posts: 153
Out West
Does the bill declaring this new Federal holiday need to be published in the FR before it becomes effective?
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Lending Compliance
#2255545 - 06/17/21 10:14 PM Re: Juneteenth & Rescission/CD and LE Timing Wonderofitall
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 76,410
Galveston, TX
No. Bills and laws are not published in the Federal Register.
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#2255639 - 06/18/21 09:45 PM Re: Juneteenth & Rescission/CD and LE Timing Wonderofitall
kmenard Offline
Member
Joined: Oct 2014
Posts: 51
Have you been re-issuing CDs if they have already be issued and signed? What about rescission on loans that closed yesterday or this morning?

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#2255655 - 06/21/21 11:14 AM Re: Juneteenth & Rescission/CD and LE Timing Wonderofitall
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 76,410
Galveston, TX
I think this pretty much says it all:

The CFPB’s acting Director, Dave Uejio, issued, “The CFPB, along with the other Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) regulators, is aware of concerns regarding implementation of the new Juneteenth Federal holiday, particularly as it relates to mortgage lender compliance with the Truth in Lending Act and TILA-RESPA Integrated Disclosure (TRID) timing requirements. The CFPB recognizes that some lenders did not have sufficient time after the Federal holiday declaration to consider whether and how to adjust closing timelines. The CFPB understands that some lenders may delay closings to accommodate the reissuance of disclosures adjusted for the new Federal holiday. The CFPB notes that the TILA and TRID requirements generally protect creditors from liability for bona fide errors and permit redisclosure after closing to correct errors. Any guidance ultimately issued by the CFPB would take into account the limited implementation period before the holiday and would be issued after consultation with the other FIRREA regulators and the Conference of State Bank Supervisors (CSBS) to ensure consistency of interpretation for all regulated entities.”
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#2255667 - 06/21/21 03:09 PM Re: Juneteenth & Rescission/CD and LE Timing Wonderofitall
terpsfan Offline
Diamond Poster
Joined: Feb 2007
Posts: 1,894
If the rescission notice was provided with a inaccurate date does a new notice need to be provided with a new rescission period?

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#2255668 - 06/21/21 04:13 PM Re: Juneteenth & Rescission/CD and LE Timing Wonderofitall
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 76,410
Galveston, TX
1. The most conservative approach is to provide each consumer with a new CD and a new right to cancel that re-starts the rescission notice. This is the 100% bullet-proof compliant way to go, but of course will likely also mean upset customers since their loans won’t fund for an additional 3 business days.

2. You could just update the CD and right to cancel with a new funding date that is one business day later than originally planned. This is technically not compliant under Regulation Z.

3. You could just ignore the Juneteenth holiday this year and fund as planned. Again, not technically compliant under Regulation Z.
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