CFPB Issues Statement on Juneteenth Mortgage Closing Delays, Signals Further Guidance

After advocacy by the American Bankers Association, the Consumer Financial Protection Bureau issued a statement last night on mortgage closing delays that might have been caused by the abrupt enactment of the new Juneteenth federal holiday, observed yesterday.

“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,” said CFPB Acting Director Dave Uejio. “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.”

The statement did not address litigation risks and rescission rights, two particular concerns of bankers as they seek to comply with the treatment of federal holidays in the mortgage rules’ prescriptive timelines. ABA has also urged the bureau to issue a public statement explaining to consumers why some mortgage transactions have been delayed or re-calculated.

Uejio appeared to signal that additional guidance may be forthcoming, noting in his statement that “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 to ensure consistency of interpretation for all regulated entities.”