Voglio sapere a riguardo di…

44268

Federal Register / Vol. 86, No. 153 / Thursday, August 12, 2021 / Rules and Regulations
planned closing date on June 17, 2021, and subject to certain disclosure timing requirements of the TRID provisions of Regulation Z.
This interpretive rule provides guidance on the 2021 Juneteenth holiday and the specific business day definition in these two situations.4
II. Discussion
lotter on DSK11XQN23PROD with RULES1

Guidance on Determining the Applicable Specific Business Day Definition The specific business day definition applies to various timing requirements in Regulation Z, including rescission of closed-end mortgages and some TRID
provisions.5 Regulation Z does not specify which version of the specific business day definition applies to these provisions when the definition changes during the relevant time periodthe version of the definition in effect when the relevant time period begins, or the new version of the definition that takes effect before the relevant time period ends. The Bureau is issuing this interpretive rule to clarify that the version of the specific business day definition that applies to these provisions is the version of the definition in effect when the relevant time period begins.6 Accordingly, in the context of the 2021 Juneteenth Federal 4 The Bureau is adopting this interpretation effective on the date of publication in the Federal Register. The interpretive rule explains the Bureaus view of the legal requirements that were applicable around the time of the Juneteenth holiday in June 2021.
5 With respect to rescission, the affected regulatory provisions are 1026.23a3i and b1v. With respect to TRID, the affected regulatory provisions are 1026.19e1iiiB, e1iv, e2iA, e4ii, and f1ii and iii.
Other provisions of Regulation Z rely on the specific business day definition and therefore also were affected by the legislation. Those provisions are outside the scope of this interpretive rule.
6 The Bureau understands that the law amending 5 U.S.C. 6103a to add Juneteenth to the list of Federal holidays was signed by the President shortly after 4 p.m. EST on June 17, 2021. See Press Release, The White House, Remarks by President Biden at Signing of the Juneteenth National Independence Day Act June 17, 2021, https
www.whitehouse.gov/briefing-room/speechesremarks/2021/06/17/remarks-by-president-biden-atsigning-of-the-juneteenth-national-independenceday-act/. While the law took effect immediately, the Bureau is clarifying that the version of the specific business day definition in effect prior to June 17, 2021, applies where the relevant time period began at any time on June 17, 2021. The requirements discussed in this interpretive rule generally apply with respect to the day that a particular event occurred, not the time of day. Accordingly, the Bureau believes it is more consistent with these provisions not to distinguish among actions taken at different times on June 17, 2021. Treating all actions taken on June 17, 2021, the same in the context of these provisions also serves the purposes of the regulation, by providing certainty to creditors and uniformity in the application of the specific business day definition across the mortgage market.

VerDate Sep<11>2014

16:14 Aug 11, 2021

Jkt 253001

holiday and the affected closed-end rescission and TRID provisions, if the relevant time period began on or before June 17, 2021, then June 19, 2021, is a business day for purposes of the specific business day definition. If the relevant time period began after June 17, 2021, then June 19, 2021, is a Federal holiday for purposes of the specific business day definition.
The Bureau concludes that this reading is consistent with the purposes of the specific business day definition, which are to provide certainty and uniformity to the timing requirements.7
When the Federal Reserve Board Board established the specific business day definition, it explained that creditors and consumers need certainty as to the length of the rescission period;
otherwise, they risk a delay in the loan funding date to account for an extension of the rescission period.8 Similarly, in issuing the TRID requirements, the Bureau explained that creditors and consumers need certainty as to the length of the waiting and other time periods required under the TRID
provisions in order to establish a closing date and reduce the potential for unexpected closing delays.9 Interpreting these provisions to require use of an amended specific business day definition that takes effect only after the relevant time period begins would undermine that certainty, as it may require a change in the timing of loan funding, closing, and other dates that are dependent on the definition.
The Bureau notes that the affected closed-end rescission and TRID
provisions do not prohibit creditors from providing longer time periods.
7 See, e.g., 74 FR 23289, 23294 May 19, 2009
applying the specific business day definition to the seven-business-day waiting period prior to consummation after receipt of required disclosures, explaining that 1 doing so makes it easier for creditors to determine how to meet timing requirements, especially where the creditor has multiple offices not open on the same days; 2 the standard for determining when a waiting period ends will be the same for all creditors; and 3
whether a creditors offices are open or closed will not affect the time that a consumer has to receive and review disclosures.
8 The Board explained that it adopted the two-tier definition because transactions subject to the right of rescission need a more definite and uniform business day definition. See 46 FR 20848, 20850
Apr. 7, 1981. Regulatory authority for this provision was later transferred to the Bureau. See Dodd-Frank Wall Street Reform and Consumer Protection Act, Public Law 111203, section 1061, 124 Stat. 1376, 2036 2010 transferring to the Bureau the consumer financial protection functions previously vested in certain other Federal agencies, including the Board.
9 The Bureau applied the specific business day definition to various TRID timing provisions to facilitate compliance for industry and to reduce the potential for closing delays. See 78 FR 79730, 79770, 79837, 79851 Dec. 31, 2013.

PO 00000

Frm 00012

Fmt 4700

Sfmt 4700

Therefore, as discussed further below, it would also be compliant for creditors to have considered June 19, 2021, a Federal holiday for purposes of these provisions.
Application to Specific Rescission Provisions As noted above, the Bureau is clarifying that the version of the specific business day definition that applies to the provisions discussed in this interpretive rule is the version of the definition in effect when the relevant time period begins. This section discusses how that guidance applies to closed-end rescission provisions that reference the specific business day definition.
Section 1026.23a3i provides that, for closed-end transactions covered by the right of rescission, the consumer may exercise the right to rescind until midnight of the third business day following the last of 1 delivery of all material disclosures; 10 2
consummation of the loan; 11 and 3
delivery of the notice of the right to rescind to each consumer entitled to rescind.12 Pursuant to 1026.23b1v, the notice must include the date the rescission period expires.
For purposes of 1026.23a3i, the rescission period is determined based on the version of the specific business day definition in effect when the rescission period begins. Similarly, for purposes of 1026.23b1v, the rescission period expiration date disclosed on the notice of the right to rescind is determined based on the version of the specific business day definition in effect when the rescission period begins. Therefore, if the rescission period began on or before June 17, 2021, for purposes of determining the rescission period and 10 The material disclosures are the required disclosures of the annual percentage rate, the finance charge, the amount financed, the total of payments, the payment schedule, and the disclosures and limitations referred to in 1026.32c and d and 1026.43g. See 12 CFR
1026.23a3ii.
11 Consummation is defined in 1026.2a13
as the time that a consumer becomes contractually obligated on the credit transaction. Per comment 2a131, when a contractual obligation is created is determined by State law.
12 A creditor is required to provide two copies of the notice of the right to rescind to each consumer entitled to rescind one copy to each if the notice is delivered in electronic form in accordance with the consumer consent and other applicable provisions of the E-Sign Act. The notice must be on a separate piece of paper but may appear with other information such as the itemization of the amount financed. The creditor may deliver the notice after the transaction is consummated, but the rescission period will not begin to run until the notice is given. See 12 CFR 1026.23b1 and comments 23b12 and 4.

E:FRFM12AUR1.SGM

12AUR1