Today, President Biden signed the Juneteenth National Independence Day Act, S. 475, which amends 5 U.S.C. 6103(a) to add “Juneteenth National Independence Day, June 19”. This creates a new federal holiday: Juneteenth National Independence Day. This bill is effective immediately, so Juneteenth will be observed in 2021. https://www.congress.gov/bill/117th-congress/senate-bill/475/text
This amendment may have an impact on closings scheduled for next week and for rescindable loans scheduled to fund next week, since we may be now losing a business day over the weekend.
A “business day” for CD delivery purposes and rescission purposes under is defined under 12 C.F.R. §1026.2(a)(6) as all calendar days except Sundays and Federal Holidays identified in 5 U.S.C. 6103(a).
The CFPB is expected to provide guidance to the industry on this issue shortly. Ideally, the CFPB will issue a statement that due to the short notice, this Saturday, June 19, may be counted as a business day for compliance with the TRID rule and for rescission purposes.
However, if the CFPB does not provide guidance or states that Saturday may not be counted as a business day, credit unions should be prepared to reschedule closings next week due to the unexpected federal holiday or to obtain waivers of the 3 day review period from their members. Credit Unions should also be prepared to delay funding on rescindable loans scheduled to fund early next week.
I will provide an update once the CFPB issues guidance on this matter.
Sincerely,
BairdLaw
242 W. Sunset, Ste. 201
San Antonio, TX 78209
210-828-5844
www.bairdlaw.com