General Overview
As we previously announced, on June 17, 2021 President Joe Biden signed the Juneteenth National Independence Day Act which made June 19th a federal holiday. The new law amends section 6103(a) of title 5 of the United States Code by inserting “Juneteenth National Independence Day, June 19” immediately following the item relating to Memorial Day. This new law is effective immediately and has impact to the definition of “business day” under TILA and Regulation Z.
12 C.F.R. § 1026.2(a)(6) contains two different business day variations “general business days” and “specific business days.” General business days are defined to mean any day on which the creditor’s offices are open to the public for carrying on substantially all of its business functions. Specific business days are defined to mean all calendar days except Sundays and the legal public holidays listed in 5 U.S.C. § 6103(a). These specified legal public holidays are 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; and as of June 17, 2021, Juneteenth National Independence Day.
The specific business day definition is used to determine several time periods in Regulation Z. Here are some references related to mortgage documents:
- The right of rescission under 12 C.F.R. 1026.23 (closed end) and 12 C.F.R. § 1026.15 (open-end).
- The seven-business day waiting period between delivery of the initial Loan Estimate and consummation. 12 C.F.R. 1026.19(e)(1)(iii)(B).
- Application of the mailbox rule to Loan Estimate delivery. 12 C.F.R. 1026.19(e)(1)(iv).
- Receipt of the Loan Estimate and intent to proceed for the purpose of imposing fees. 12 C.F.R. 1026.19(e)(2)(i)(A).
- Receipt of revised Loan Estimate and mailbox rule for receipt of revised Loan Estimate. 12 C.F.R. 1026.19(e)(4)(ii).
- Receipt of Closing disclosure three business days before consummation. 12 C.F.R. 1026.19(f)(1)(iii).
- Application of the mailbox rule for Closing Disclosure delivery. 12 C.F.R. 1026.19(f)(1)(ii).
- High cost mortgage disclosure timing requirements. 12 C.F.R. 1026.31(c).
Important Rescission Date Note
The Rescission Date (field 1788) is passed to ConformX from the loan origination system as a data point that prints on the Notice of Right to Cancel forms.
ConformX Changes
Notice of Right to Cancel Forms
The receipt portion of the notice of right to cancel forms has been updated to include “Juneteenth National Independence Day” in the list of legal federal holidays. The following forms have been updated:
- HELOC Notice of Right to Cancel (Cx2992);
- Right to Cancel – NOT a Refi. with Original Lender H-8 (Cx8204);
- Right to Cancel – Refinance with Original Lender H-9 (Cx8205); and
- Right to Cancel – Refinance with Original Lender H-9 (Cx8206).
If you use a custom Notice of Right to Cancel document in ConformX, please contact your Client Relationship Manager directly or contact our Client Support Team at 1-800-497-3584 to request an update.
ConformX System Calendar
ConformX uses a system calendar to apply business day rules where applicable. We have added June 19, 2021 as a holiday to this system calendar.
If you are open for business on Saturday, June 19, 2021 and you do not already have a custom holiday calendar set up in ConformX, please contact your Client Relationship Manager directly or contact our Client Support Team at 1-800-497-3584 to have a custom holiday calendar set up to remove June 19, 2021 from the holiday list in order to include June 19, 2021 as a general business day.
ConformX Change Date
These changes will be applied the evening of June 18, 2021 and will be reflected on ConformX Production on June 19, 2021.
If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.6584.
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