Truth in Lending (Regulation Z); Impact of the 2021 Juneteenth Holiday on Certain Closed-End Mortgage Requirements

CFPB Summary re: Truth in Lending (Regulation Z); Impact of the 2021 Juneteenth Holiday on Certain Closed-End Mortgage Requirements

12 CFR Part 1026

Summary:

The Consumer Financial Protection Bureau (Bureau) is issuing this interpretive rule to provide guidance on certain Regulation Z timing requirements related to the recission of closed-end mortgages and the TILA-RESPA Integrated Disclosures (TRID).  These timing requirements are based on a definition of “business day” that excludes days that are designated legal public holidays under Federal law.  The interpretive explains these timing requirements in light of recent legislation that designated “Juneteenth National Independence Day, June 19” as a Federal legal public holiday.  It clarifies that, if the relevant closed end recission or TRID time period began on or before June 17, 2021, then June 19, 2021, was considered a business day.  However, nothing prohibits creditors from providing longer time periods.  Therefore, it would also be compliant for creditors to have considered June 19, 2021, a Federal holiday for purposes of these provisions.

The interpretive rule became effective on August 12, 2021 and the rule can be accessed here.