Insight

Special Alert | Mortgage requirements and the Juneteenth holiday

CFPB Interpretive Rule addresses TRID requirements

Amy S. Matsuo

Amy S. Matsuo

ESG and Regulatory Insights Lead, KPMG LLP

The Juneteenth National Independence Day Act was signed into law on June 17, 2021, two days before the newly created holiday on June 19. To address confusion about how to treat June 19, 2021 for purposes of regulatory compliance:

  • The CFPB released an Interpretive Rule to provide guidance on compliance with certain timing requirements under Regulation Z that relate to the rescission of closed-end mortgages and the TILA-RESPA Integrated Disclosures (TRID) for purposes of the recently established Juneteenth holiday.
  • The timing requirements are based on a definition of “business day” that excludes days designated as legal public holidays under Federal law; the guidance addresses how to determine whether to treat June 19, 2021, as a Federal holiday or a business day.
  • The Interpretive Rule states that 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.
  • The CFPB also states that creditors are not prohibited from providing longer time periods than required, so if a time period began on, or prior to, June 17, 2021, creditors could still consider June 19, 2021, a federal holiday. Friday, June 18, the day of federal observance for the 2021 Juneteenth holiday, was considered a business day because when a federal holiday falls on a Saturday, the day of federal observance is considered a business day for these time-sensitive consumer protections.

The interpretive Rule is effective upon publication in the Federal Register.

The designation of a new federal holiday necessitates operational and systems changes for financial services companies. The FDIC, OCC, and Federal Reserve all issued statements following the designation of Juneteenth (here, here, and here). Additional statements may be forthcoming, as appropriate, to address identified risk or compliance issues. 

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