Acting Director: Impact of 'Juneteenth' on Mortgage Closings

Consumer Financial Protection Bureau (CFPB) Acting Director Dave Uejio
Consumer Financial Protection Bureau (CFPB) Acting Director Dave Uejio

Consumer Financial Protection Bureau (CFPB) Acting Director Dave Uejio recently issued the following statement on Congress establishing the Juneteenth National Independence Day Act into law:

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://www.consumerfinance.gov/coronavirus/mortgage-and-housing-assistance/.

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