CFPB Clarifies June Mortgage Requirements – RISMedia |

0
20

[ad_1]

This year, June 19 was officially declared a federal holiday just days before June 19, leaving those in the mortgage industry with questions about whether it should be considered a working day for regulatory compliance purposes. The Consumer Financial Protection Bureau (CFPB) has issued an interpretative rule to clarify the mortgage requirements for the new holiday.

“The federal recognition and celebration of June Day has been a welcome and important step towards healing the national legacy of slavery,” said CFPB Acting Director Dave Wegio. “We understand that the swift enactment of federal legislation in June raised interpretation and compliance issues for the mortgage industry with respect to closed mortgage terminations and some urgent mortgage disclosures. The mortgage industry may look to today’s rule of interpretation when determining how to treat June 19, 2021. ”

Regulation Z of the CFPB Mortgage Rules sets out time requirements, calculated in business days, when borrowers are required to obtain certain information and when borrowers are allowed to cancel certain mortgages.

The cancellation of closed mortgages and TILA-RESPA Comprehensive Disclosures, whether June 19, 2021 is considered a business day or a federal holiday, depends on when the relevant time period began. If the relevant time period has started:

– No later than June 17, 2021, June 19 was a working day.
– After June 17, 2021, June 19 was a federal holiday.

The interpretative rule also explains that creditors are not prohibited from granting longer periods of time than required, so if the time period started on or before June 17, 2021, creditors may still consider June 19, 2021 a federal holiday. Friday, June 18 – federal compliance day for the June 19, 2021 holiday – was considered a business day because when a federal holiday falls on a Saturday, federal compliance day is considered a business day for these urgent consumer protection measures.

Read the explanatory rule.



[ad_2]

Source link