Juneteenth Impact on TRID and Rescission

Jun 17, 2021

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.

242 W. Sunset, Ste. 201
San Antonio, TX 78209

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