At the time of going to press on Friday, there was some confusion about how the new federal holiday in June would apply to mortgage terms that count Saturday as a business day.
The Consumer Financial Protection Bureau had promised to take into account the sudden nature of the introduction of the new holiday when consulting other authorities on the matter.
“The CFPB recognizes that lenders did not have enough time to adjust the closing dates prior to the holiday and will take this fact into account in any guidance it ultimately issues. All guidelines would be issued after consultation with the other … regulators … to ensure a consistent interpretation for all supervised entities, "a spokesman said in a statement emailed.
Meanwhile, lawyers have said companies are making different calls whether or not they think the new holiday is a reason for them to rethink and postpone the deadlines.
“I've seen reactions across the board. Without guidance, it is difficult for lenders to have a clear view of traffic regulations, ”said Richard Horn, co-managing partner at the law firm Garris Horn and former Special Counsel and Senior Advisor at CFPB between January 2011 and February. 2014.
The June 19 holiday raised questions in particular about the timing of refinancing and closing of refinancing loans.
CFPB includes Saturdays in the three working days that consumers need to consider whether to complete their refinancing after completing certain steps. It is not a public holiday. (The three day period begins after consumers sign a credit agreement called a Schuldschein, receive a truth disclosure about the loan, and receive two copies of a notice of their right of withdrawal.)
The final report should be sent within three working days of dispatch. While it appears that the Post's decision to continue delivering mail this weekend despite the holiday has addressed these concerns to some extent, there have been reports of mixed interpretations as to whether Saturday would be included in the working day count.
Juneteenth "potentially affects all of these business day counting mechanisms," said Pete Mills, senior vice president of housing policy and membership engagement for the Mortgage Bankers Association. Mills said he received many calls on the matter and advised lenders to seek legal advice on Friday.