CFPB Guidance on Juneteenth Holiday

Through an interpretive rule effective August 12, 2021, the CFPB finalized guidance on the Regulation Z timing requirements related to the right of rescission for closed-end mortgages and TILA-RESPA or TRID disclosures. In sum, the guidance is intended to clarify those timing requirements with respect to the definition of “business day” and recent legislation that designated Juneteenth as a Federal public holiday. The following tables explain CFPB’s interpretive rule.

Juneteenth, Impact on Right of Rescission	Business Day vs. New Federal Holiday
General Rule	Consumer may rescind a credit transaction where a security interest will be acquired in the consumer’s principal dwelling until midnight of the third business day following the last of 1) delivery of all disclosures; 2) loan consummation; and 3) delivery of rescission notice to each consumer entitled to rescind.
CFPB interpretation for Juneteenth	Rescission period expiration date is based on the definition of business day in effect on the date the rescission period begins.  CFPB’s analysis discusses how the interpretation applies to closed-end rescission periods.
Rescission Began on or Before June 17	Saturday June 19 is a business day notwithstanding the addition of Juneteenth as a holiday.
Example	Rescission period began Wednesday, June 16.  The creditor disclosed Saturday June 19 as expiration date for rescission.  In this example, Saturday June 19 is a business day for purposes of determining the end of the rescission period.
Recission Period Began June 18	June 19 is a federal holiday. The rescission period would end at midnight on June 23, effectively June 24.

Juneteenth, Impact on TRID Disclosures	Business Day vs. New Federal Holiday
Loan Estimate	General rule is creditor must deliver or mail the loan estimate to consumer no later than 7 business days before consummation of the transaction.
CFPB Interpretation for Juneteenth	The 7-business day waiting period is determined based on the definition of business day in effect on the date the creditor delivers or mails the loan estimate.
Loan Estimate mailed or delivered Monday June 14, 2021.	Creditor in compliance if consummation occurs on or after Tuesday, June 22, 2021.  Creditors had the option of considering June 19 a Federal Holiday.
Mailbox Rules	In the case of a loan estimate or closing disclosure, a consumer is considered to have received the loan estimate or closing disclosure 3 business days after it is mailed.
Loan Estimate or Closing Disclosure mailed Thursday, June 17, 2021.	Consumer is considered to have received the Loan Estimate or Closing Disclosure on Monday June 21, 2021.
Receipt of Revised Loan Estimate/Closing Disclosure Prior to Consummation.	A revised loan estimate must be received by 4 business days before consummation.  A consumer must receive the Closing Disclosure no later than 3 business days before consummation.
Closing Disclosure delivered to consumer in person on Thursday, June 17, 2021.	Creditor complies with timing rule if consummation occurred on or after Monday, June 21, 2021.