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#2255501 - 06/17/21 06:31 PM Juneteenth Federal Holiday
Cridal_Z Offline
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Since this is being signed off on today (already approved) how the heck do we handle rescission dates for refinances?

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#2255502 - 06/17/21 06:36 PM Re: Juneteenth Federal Holiday Cridal_Z
rlcarey Online
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For loan that have not been signed, you need to kick it out a day. For loans that have closed, the courts will have to sort that one out.
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#2255503 - 06/17/21 06:44 PM Re: Juneteenth Federal Holiday Cridal_Z
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For loans that have already closed, my best recommendation is that you reopen the rescission period, issue a new rescission notice with an expiration date 3 business days after issuance, not counting this Saturday, and not fund the loan until the expiration of the rescission period and you are reasonably sure the borrower has not rescinded. Alternatively, you could choose to leave the notice you provided, take the risk, and let the court sort it out later as Randy says. See my post here: https://www.bankersonline.com/forum...mpact-on-rescission-and-trid#Post2255492 This also impacts TRID closings for next week if the borrowers have not yet received the Closing Disclosure.
Last edited by RVFlyboy; 06/17/21 06:45 PM.
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#2255504 - 06/17/21 06:49 PM Re: Juneteenth Federal Holiday RVFlyboy
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Has anyone heard if the Federal Reserve is going to be closed tomorrow?
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#2255508 - 06/17/21 07:22 PM Re: Juneteenth Federal Holiday RR Sarah
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The Federal Reserve will be open tomorrow and Monday as the federal holiday is a Saturday.
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#2255509 - 06/17/21 07:36 PM Re: Juneteenth Federal Holiday Cridal_Z
RVFlyboy Offline
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ABA has confirmed with Fed they will be open both tomorrow and Monday. ABA also says CFPB is supposed to issue an industry notice upon Biden's signing to tell FIs how to address. Hopefully they will say to treat Sat as a business day for 2021 and adjust going forward after that - that would be both the most consumer- and industry-friendly solution. Anything else is going to both screw up banks and mess up a lot of consumer planned closings, contract fulfillment, etc.
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#2255511 - 06/17/21 07:39 PM Re: Juneteenth Federal Holiday Cridal_Z
Skittles Offline
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Fingers crossed, Jim. Having to change things today would be a nightmare. I can see next year, though.
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#2255512 - 06/17/21 07:42 PM Re: Juneteenth Federal Holiday Cridal_Z
rlcarey Online
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The problem with that is the CFPB can issue something about enforcement. But the law is the law when it comes to litigation.
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#2255520 - 06/17/21 08:14 PM Re: Juneteenth Federal Holiday Cridal_Z
rainman Offline
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Fortunately, "business day" is defined in Reg. Z, but not in TILA. So CFPB could do an interim rule on an emergency basis amending the definition for this year.
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#2255534 - 06/17/21 09:37 PM Re: Juneteenth Federal Holiday Cridal_Z
Tesla Offline
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Can we rely on the Reg Z definition of business day which does not include Juneteenth as a Federal holiday (yet)?
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#2255535 - 06/17/21 09:37 PM Re: Juneteenth Federal Holiday rainman
RVFlyboy Offline
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Originally Posted by rainman
Fortunately, "business day" is defined in Reg. Z, but not in TILA. So CFPB could do an interim rule on an emergency basis amending the definition for this year.
This is exactly what we need from them!
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#2255586 - 06/18/21 03:36 PM Re: Juneteenth Federal Holiday Tesla
travelgirl1 Offline
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I was thinking this same. While it's part of the Act, it's not technically part of the regulation...yet...so maybe a leg to stand on there? We already have lenders asking about their loans currently in rescission. We broker loans for a third party and they are recognizing the new holiday and excluding from the three day count.

Who knows if we will get an emergency exemption for this year. Would be nice but are there even lawmakers working in Washington today? The ABA is closed to honor the holiday.
Last edited by travelgirl1; 06/18/21 03:39 PM.
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#2255589 - 06/18/21 03:42 PM Re: Juneteenth Federal Holiday Cridal_Z
rlcarey Online
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Unfortunately it is in the regulation. What follows "such as" are only examples:

......... the term means all calendar days except Sundays and the legal public holidays specified in 5 U.S.C. 6103(a), such as New Year's Day..........
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#2255591 - 06/18/21 03:46 PM Re: Juneteenth Federal Holiday Cridal_Z
rainman Offline
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Yes, the law that President Biden just signed amended 5 U.S.C. 6103(a) to add Juneteenth, and with the way Reg. Z is worded that means it's automatically pulled into the coverage of the regulation. And it does not appear that the CFPB will be making any kind of change yesterday evening/today (I'd think they would have at least announced that it's coming if they were going to issue an emergency regulatory change.)
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#2255593 - 06/18/21 03:50 PM Re: Juneteenth Federal Holiday rainman
travelgirl1 Offline
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So to remove the regulatory risk, reset and provide new rescission and/or closing disclosures - still leaves some customer, financial and reputation risk (despite this being out of the banks control).

Or accept the risk and leave things alone. Happy Friday to us!

Thanks Randy and Rainman for your feedback!

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#2255613 - 06/18/21 06:03 PM Re: Juneteenth Federal Holiday Cridal_Z
Cridal_Z Offline
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We had an investor 30 mins ago send an email out that Saturday would not count in our "days" count. What in the world? That affects purchases who had CDs sent out yesterday to close Monday, and of course as mentioned any refis that closed late t his week. :|

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#2255658 - 06/21/21 01:44 PM Re: Juneteenth Federal Holiday Cridal_Z
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You are here
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#2255660 - 06/21/21 02:25 PM Re: Juneteenth Federal Holiday Cridal_Z
Skittles Offline
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We are still waiting on a decision from one of our investors for a loan that was to be out of rescission and fund today. More than likely we are going to go ahead and push it out a day (new rescission and CD) before hearing from them.
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#2256337 - 07/06/21 08:28 PM Re: Juneteenth Federal Holiday Cridal_Z
John Burnett Offline
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The next time this rule will be an issue is Christmas 2021 and New Year's Day 2022. Both fall on Saturday. Christmas Eve and New Year's Eve will both be business days when the precise business day definition applies.

After New Year's Day 2022, we see Juneteenth and Christmas in 2022 and New Year's Day in 2023 all fall on Sunday. The Monday after each of those days (June 20, 2022, December 26, 2022, and January 2, 2023) will all be business days when the precise business day definition applies.

Friday, November 10, 2023, will be a business day, but Saturday, November 11, 2023, will not.

None of the federal holidays fall on a weekend in 2024 or 2025. Thank goodness!

In 2026, July 4 falls on Saturday again, and will not be a business day. July 3 will be the "observed holiday," but will be a business day when the precise definition applies. Christmas also occurs on a Saturday that year.
Last edited by John Burnett; 07/08/21 07:37 PM.
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