CFPB CLARIFICATION ON JUNETEENTH

On June 18, 2021, the Consumer Financial Protection Bureau (CFPB) published 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.
  • Recognizes that some lenders did not have sufficient time after the Federal holiday declaration to consider whether and how to adjust closing timelines.
  • Understands that some lenders may delay closings to accommodate the reissuance of disclosures adjusted for the new Federal holiday.
  • 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.

Notably, the statement does not mention litigation risks and rescission rights.

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