#2021-25, August 6, 2021

CFPB Issues Rule Clarifying Juneteenth Mortgage Closing Issues

This week, the Consumer Financial Protection Bureau (CFPB) issued an interpretive rule clarifying how the new Juneteenth federal holiday affected the timing of disclosures required for mortgage transactions in process.  As we reported previously in the Washington Update, President Biden signed legislation recognizing Juneteenth as a new federal holiday in June.  Since June 19 fell on a Saturday, the federal government observed the new holiday on June 18.  Given the short timeframe between the law’s enactment and the holiday’s observance, lenders questioned how it would affect mortgage closings in progress.

The CFPB rule addresses Regulation Z timing requirements related to rescission of closed-end mortgages and the TILA-RESPA Integrated Disclosures.  Specifically, it clarifies that “if the relevant closed-end rescission or TRID time period began on or before June 17, 2021, then June 19, 2021 was considered a business day, but nothing prohibits creditors from providing longer time periods. Therefore, it would also be compliant for creditors to have considered June 19, 2021 a federal holiday for purposes of these provisions.”  The rule is effective once it is published in the Federal Register.

To read more, click here.

CDC Issues New Eviction Moratorium Through October 3

As COVID-19 cases continue to increase, particularly in certain states, the Centers for Disease Control and Prevention (CDC) this week issued a new order directing all evictions to be suspended through October 3, 2021 “in counties with heightened levels of community transmission.”  The agency indicated that the new order is “intended to target specific areas of the country where cases are rapidly increasing, which likely would be exacerbated by mass evictions.”  At this writing, all counties in Massachusetts, with the exception of Hampshire and Franklin, are subject to the CDC order.

As we reported previously, the CDC’s nationwide eviction moratorium expired on July 31. The order had been upheld by a 5-4 decision in the Supreme Court early in July.  According to published reports, several real estate groups are planning to challenge the new order, which was issued after Congress failed to authorize an extension of the original moratorium.

To read more, click here.

CFPB Not Extending Debt Collection Final Rules Effective Date

Late last week, the CFPB indicated that it will not delay the effective date of two final rules issued under the Fair Debt Collection Practices Act (FDCPA), which governs third-party debt collectors.  The Bureau had proposed a delay in the effective date until January 29, 2022; however, it “has now determined that such an extension is unnecessary” and will allow the rules to take effect as planned on November 30.

While the FDCPA does not generally apply to banks and other first-party collectors, banks do oversee the activity of third-party collectors that must comply with the new rules.

To read more, click here.