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Juneteenth National Independence Day and Key Compliance Dates

June 18, 2021rashtonBulletin

Overview

On June 17, 2021, President Biden signed legislation making June 19th a federal holiday to be officially known as Juneteenth National Independence Day. The creation of this new federal holiday will impact mortgage disclosure regulations that are tied to “business day” time periods, in particular the time to close after a consumer’s receipt of the Closing Disclosure (CD), and the rescission period following closing. This year, lenders will not be able to count Saturday, June 19th as a business day for disclosure and rescission purposes. This may affect disclosures and closing documents that have already been delivered to borrowers, or that are in the process of being issued. Scheduled closing dates may need to be pushed out one or two days, and Borrowers will need to be notified of any closing delays or extensions to their rescission period.

CD Signing and Delays in Closing

Juneteenth National Independence Day, is considered a Specific Business Day to be excluded when counting days to determine the proper waiting period prior to consummation.

Under TRID Borrowers must receive a copy of the CD at least three business days before consummation of the transaction. Therefore due to the holiday, scheduled closing dates will need to be pushed out one day as shown in the table below:

CD Signed On Earliest Closing Date prior to New Holiday Earliest Closing Date with New Holiday Impact
6/16/2021 6/19/2021 6/19/2021 No Change
6/17/2021 6/21/2021 6/22/2021 Delay 1 day
6/18/2021 6/22/2021 6/23/2021 Delay 1 day
6/19/2021 6/23/2021 6/24/2021 Delay 1 day

Listed below are some additional disclosure considerations associated with Juneteenth National Independence Day related to loan closing.

  • Saturday, June 19, 2021 may not be included in the seven (7) business day waiting period between the date the initial Loan Estimate (LE) was provided to the borrower and the consummation of the loan.
  • When re-disclosure of the LE is required, Saturday, June 19, 2021 may not be included in the four (4) business day waiting period between the date the revised LE was provided to the borrower and the consummation of the loan.
  • When re-disclosure of the CD is required, Saturday, June 19, 2021 may not be included in the three (3) business day waiting period between the date the revised CD was provided to the borrower and the consummation of the loan.

Regulation Z – Rescission Timing

Juneteenth National Independence Day, is considered a Specific Business Day to be excluded when counting days to determine the proper rescission period and Saturday, June 19, 2021 may not be included in the rescission period for owner-occupied (primary residence and second homes) refinance transactions.

Under Regulation Z, borrowers are permitted to rescind (cancel) the transaction within three business days after consummation. Therefore rescission and disbursement dates for impacted loans will need to be revised to push out the funding by one or two days as shown in the table below:

Closing Docs Signed On Rescission End without New Holiday Disbursement Date without New Holiday Rescission End with
New Holiday
Disbursement Date with
New Holiday
Impact
6/16/2021 6/19/2021 6/20/2021 6/21/2021 6/22/2021 Delay 2 days
6/17/2021 6/21/2021 6/22/2021 6/22/2021 6/23/2021 Delay 1 day
6/18/2021 6/22/2021 6/23/2021 6/23/2021 6/24/2021 Delay 1 day
6/19/2021 6/23/2021 6/24/2021 6/23/2021 6/24/2021 No Impact

For impacted loans with documents already sent or signed, CMS Compliance will notify the borrowers via email of the delay. The rescission notice already provided need not be updated with the revised rescission date, but the borrower(s) will need to be informed of delay to funding their loan. If there are any borrower complaints related to the delay, please refer these to your Account Executive or Account Manager immediately.

Expiring Locks

Rate Locks impacted by the Juneteenth holiday that expire before the revised funding date if delayed are eligible for a free extension to the next business day. Requests to extend rate locks should be sent to your Account Executive or Account Manager.

Contacts

Please contact your Account Executive or Account Manager with any questions.

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