Impact Of Juneteenth Holiday On Residential Mortgage Closings

President Joe Biden signed the Juneteenth National Independence Day Act on June 17, 2021. A response from Consumer Financial Protection Bureau (CFPB) acting director Dave Uejio was released the day after, stating:

“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 is aware of concerns regarding the implementation of the new Juneteenth federal holiday as it relates to mortgage lender compliance with Truth in Lending Act and TILA-RESPA Integrated Disclosure (TRID) timing requirements. The CFPB recognizes that lenders were not given enough time to adjust closing times after the federal holiday declaration. To accommodate the reissuance of disclosures adjusted for the new federal holiday, lenders may delay closing times. 

TILA and TRID requirements protect creditors from liability for bona fide errors and permit redisclosure after closing to correct errors. Guidance by the CFPB will 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). 

For information and resources for homeowners and renters impacted by the COVID-19 pandemic, visit www.consumerfinance.gov.