(Aug. 27, 2021) Two new summaries of recent CFPB rules – on clarifying the impact of the Juneteenth holiday, and Military Lending Act (MLA)-related exams – have been developed and posted by NASCUS. The summaries are available to members only.
In an interpretive rule issued in July, the bureau attempted to clarify when the new Juneteenth holiday (federally observed for the first time this past June) counts as a business day or federal holiday for purposes of mortgage rescissions and disclosures. According to the rule, that depends on when the relevant time period for the loan began. According to the bureau, if the relevant time period began on or before June 17, then June 19 was a business day. If the period began after June 17, then June 19 was a federal holiday. The timing effects rescission of closed-end mortgages and TILA-RESPA integrated disclosures, the bureau said.
Regarding MLA, the agency said in an interpretive rule effective in June that examinations under the law will now resume, asserting that the prior administration’s reasoning for discontinuing the reviews were not found persuasive. The rule explains the basis for its authority to examine supervised financial institutions for risks to active duty servicemembers and dependents from conduct that violates the MLA. (The MLA, enacted in 2006, and implemented by the Department of Defense, applies to consumer credit offered to military service members and their dependents by, among other things, limiting the interest rates that may be charged on many types of consumer loans to no more than 36%.)