The Consumer Financial Protection Bureau released an interpretive rule to assist in determining whether to treat June 19, 2021, as a federal holiday or a business day for purposes of compliance with certain time-sensitive borrower protections. The rule was effective upon publication in the Aug. 12 Federal Register, however the CFPB clarified that the interpretive rule has retroactive application, offering that the interpretation applies to “the legal requirements that were applicable around the time of the Juneteenth holiday in June 2021.”
Regulation Z establishes timing requirements, calculated in business days, for when borrowers must receive certain disclosures (including the TRID Loan Estimate and Closing Disclosure) and when borrowers have the right to cancel some mortgages. Because the Juneteenth National Independence Day Act was signed into law two days before the newly created holiday on June 19, many participants in the mortgage industry reported being unsure of how to treat the day for purposes of regulatory compliance for loans in process.
The CFPB clarified in this Interpretive Rule, for rescission of closed-end mortgages and the TRID disclosures, whether June 19, 2021, counts as a business day or federal holiday depends on when the relevant time period began. If the relevant time period began:
- On or before June 17, 2021, then June 19 was a business day.
- After June 17, 2021, then June 19 was a federal holiday.