CFPB Acting Director Statement on Compliance Impact of New Juneteenth Holiday
The CFPB Acting Director just issued a statement this evening, June 18, on the impact of the new Juneteenth holiday on TILA and TRID compliance, which I have copied and pasted below. My initial off-the-cuff reaction is that this statement is a positive development (and in a short period of time), but it does not absolve lenders of compliance obligations that are impacted by the new holiday, in particular the potential need to adjust rescission and TRID timeframes. Those obligations are likely subject to civil liability, and this statement likely would not have any impact on that. Also, it's not clear that the bona fide error or post-closing CD provisions would come into play here. Unfortunately, this means consumers may still be forced to face unexpected delays in their closings, which can cause consumer harm, and have a ripple effect in the housing market. I hope there is more to come from the CFPB on this important issue.
Please contact Richard Horn at rich@garrishorn.com if you would like to discuss this important issue.
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FOR IMMEDIATE RELEASE:
June 18, 2021
MEDIA CONTACT:
Office of Communications
Tel: (202) 435-7170
Statement by CFPB Acting Director Dave Uejio on Impact of the Juneteenth National Independence Day Federal Holiday on Residential Mortgage Closings
WASHINGTON, D.C. — Today, Consumer Financial Protection Bureau (CFPB) Acting Director Dave Uejio issued the following statement:
President Biden’s signing of the Juneteenth National Independence Day Act into law yesterday afternoon is a cause for celebration. Juneteenth is a moment for us to commemorate the emancipation of those enslaved. I am proud that we as a country are taking concrete steps to recognize and heal from the legacy of slavery, even as I recognize that there is much more work to do.
The CFPB, along with the other Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) regulators, is aware of concerns regarding implementation of the new Juneteenth Federal holiday, particularly as it relates to mortgage lender compliance with the Truth in Lending Act and TILA-RESPA Integrated Disclosure (TRID) timing requirements. The CFPB recognizes that some lenders did not have sufficient time after the Federal holiday declaration to consider whether and how to adjust closing timelines. The CFPB understands that some lenders may delay closings to accommodate the reissuance of disclosures adjusted for the new Federal holiday. The CFPB notes that the TILA and TRID requirements generally protect creditors from liability for bona fide errors and permit redisclosure after closing to correct errors. Any guidance ultimately issued by the CFPB would take into account the limited implementation period before the holiday and would be issued after consultation with the other FIRREA regulators and the Conference of State Bank Supervisors (CSBS) to ensure consistency of interpretation for all regulated entities.
For information and resources for homeowners and renters impacted by the COVID-19 pandemic, visit https://lnkd.in/ge8NJRX.
