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#2112015 - 12/23/16 03:23 PM Re: Observed Holiday /business day Cheli
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
And the regulators -- read, the Bureau -- don't get the large numbers of questions that might prompt it to tweak the interpretation by saying "this only applies when these holidays fall on a Saturday" or "this also applies to a Monday observance when a fixed-date holiday falls on Sunday."

Perhaps lenders who are frustrated by this shortcoming in the Official Interpretations should ask the Bureau to clarify the Interpretation on way or the other.
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John S. Burnett
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#2266666 - 02/22/22 03:52 PM Re: Observed Holiday /business day Cheli
Tmbg99 Offline
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Joined: Jan 2022
Posts: 18
The Monday Federal Holiday is rearing its ugly head again for me (I am new to the Compliance world)...

Yesterday (Monday, 2/21/2022) was a Federal Holiday. We were open for business yesterday.
Borrower acknowledged receipt of their Loan Estimate yesterday (2/21/2022). Can we send the initial closing disclosure today (2/22/2022) because we were opened yesterday, or do we have to wait until tomorrow because it was a federal holiday yesterday so receipt of the Loan Estimate can't be acknowledged until today?
Last edited by Tmbg99; 02/22/22 03:54 PM.
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#2266670 - 02/22/22 04:25 PM Re: Observed Holiday /business day Cheli
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
I was going to say that it was OK, but the revised LE has to be received at least four business day prior to closing. So, even if they got it on Monday, I am not sure it would be considered received until today.


Official Interpretation
19(e)(4)(ii) Relationship between revised Loan Estimates and Closing Disclosures.
1. Revised Loan Estimate may not be delivered at the same time as the Closing Disclosure. Section 1026.19(e)(4)(ii) prohibits a creditor from providing a revised version of the disclosures required under § 1026.19(e)(1)(i) on or after the date on which the creditor provides the disclosures required under § 1026.19(f)(1)(i). Section 1026.19(e)(4)(ii) also requires that the consumer must receive any revised version of the disclosures required under § 1026.19(e)(1)(i) no later than four business days prior to consummation, and provides that if the revised version of the disclosures are not provided to the consumer in person, the consumer is considered to have received the revised version of the disclosures three business days after the creditor delivers or places in the mail the revised version of the disclosures
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#2266675 - 02/22/22 04:51 PM Re: Observed Holiday /business day rlcarey
Tmbg99 Offline
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Thank you very much for the clarification. Love this site.

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#2266702 - 02/22/22 07:49 PM Re: Observed Holiday /business day Cheli
Compliance NABW Offline
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Joined: Oct 2015
Posts: 1,668
Yes, correct. Receipt of LE prior to consummation has the same rules as the receipt of the CD as far as general business days and specific. Since this is an event relating to the specific business day definition, Monday would not count as a day of receipt here. Tuesday would be the Regulatory day of receipt. However, I would understand it to be okay to send the initial CD today (2/22), as the Regulatory prohibition is just that the LE and the CD cannot be ISSUED on the same day. In this case, the LE was issued 2/21 and the CD would be issued 2/22. Since those dates are not the same, then it is permissible, imhu. Confirmed receipt of an LE could even take place after the initial CD is issued and it wouldn't matter as far as the prohibition on issuance. Receipt of the LE is not what matters. It is the delivery.

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#2266704 - 02/22/22 07:55 PM Re: Observed Holiday /business day Cheli
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
If closing is scheduled for Friday, how does issuing the LE on Monday square with this requirement?

Section 1026.19(e)(4)(ii) also requires that the consumer must receive any revised version of the disclosures required under § 1026.19(e)(1)(i) no later than four business days prior to consummation,
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2266709 - 02/22/22 08:41 PM Re: Observed Holiday /business day rlcarey
Compliance NABW Offline
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Joined: Oct 2015
Posts: 1,668
Originally Posted by rlcarey
If closing is scheduled for Friday, how does issuing the LE on Monday square with this requirement?

Section 1026.19(e)(4)(ii) also requires that the consumer must receive any revised version of the disclosures required under § 1026.19(e)(1)(i) no later than four business days prior to consummation,

I am not addressing closing on Friday. The question only asked about sending the initial CD on Tuesday. Consummation couldn't occur until Saturday at the earliest in this scenario.

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