National Day of Mourning – December 5, 2018

The country will observe a National Day of Mourning on Wednesday, December 5, 2018, honoring the life of 41st President of the United States, George H.W. Bush.

Question:  How will the National Day of Mourning impact the counting of “business days” for rescission and TRID purposes?

Answer: The National Day of Mourning should be treated as a business day for CD delivery purposes and rescission purposes.  If the lender will be open on the National Day of Mourning, it should be treated as a business day for LE delivery purposes as well.

Discussion:

Under the federal rules, Reg. Z §1026.23(a)(3) provides that the consumer’s with the right of rescission may exercise that right until midnight of the third “business day” following consummation.  “Business day” is defined in §1026.2(a)(6), reproduced below:

(6) Business day means a day on which the creditor’s offices are open to the public for carrying on substantially all of its business functions. However, for purposes of rescission under §§ 1026.15 and 1026.23, and for purposes of §§ 1026.19(a)(1)(ii),1026.19(a)(2), 1026.19(e)(1)(iii)(B), 1026.19(e)(1)(iv), 1026.19(e)(2)(i)(A), 1026.19(e)(4)(ii), 1026.19(f)(1)(ii), 1026.19(f)(1)(iii), 1026.20(e)(5), 1026.31, and 1026.46(d)(4), the term means all calendar days except Sundays and the legal public holidays specified in 5 U.S.C. 6103(a), such as New Year’s Day, the Birthday of Martin Luther King, Jr., Washington’s Birthday, Memorial Day, Independence Day, Labor Day, Columbus Day, Veterans Day, Thanksgiving Day, and Christmas Day.

5 U.S.C. 6103(a) provides:

The following are legal public holidays:
New Year’s Day, January 1.
Birthday of Martin Luther King, Jr., the third Monday in January.
Washington’s Birthday, the third Monday in February.
Memorial Day, the last Monday in May.
Independence Day, July 4.
Labor Day, the first Monday in September.
Columbus Day, the second Monday in October.
Veterans Day, November 11.
Thanksgiving Day, the fourth Thursday in November.
Christmas Day, December 25.

For Texas Home Equity lending, if you comply with the federal rules, you comply with the rescission requirements of Texas Home Equity Lending.– see Tex. Admin. Code §153.25, reproduced below:

The owner of the homestead and any spouse of the owner may, within three days after the extension of credit is made, rescind the extension of credit without penalty or charge.
(1) This provision gives the owner’s spouse, who may not be in record title or have community property ownership, the right to rescind the transaction.
(2) The owner and owner’s spouse may rescind the extension of credit within three calendar days. If the third calendar day falls on a Sunday or federal legal public holiday then the right of rescission is extended to the next calendar day that is not a Sunday or federal legal public holiday.
(3) A lender must comply with the provisions of the Truth-in-Lending Act permitting the borrower three business days to rescind a mortgage loan in applicable transactions. Lender compliance with the right of rescission procedures in the Truth-in-Lending Act and Regulation Z, satisfies the requirements of this section if the notices required by Truth-in-Lending and Regulation Z are given to each owner and to each owner’s spouse.

If you have any questions on how the National Day of Mourning will impact you mortgage lending operation, please contact us.