Posted by jba/fl on 11/1/07 7:52pm
Msg #219361

On This Veterans Day, Rescission Period Stays The Same (NNA)

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By Nevin Barich
[e-mail address]
NSA Now: Issue #95 — November 2007


"Because Veterans Day (November 11) falls on a Sunday, Notary Signing Agents should know that the holiday this year has no bearing on the three-day rescission period for a loan closing.

Although many businesses will be closed on Monday, November 12, in observance of Veterans Day, November 12 is counted as a business day for loan closings. For example, if a loan signing is performed on Saturday, November 10, Monday the 12th would be counted as the first business day.

For most refinance loans, federal law gives the borrower a three-day “cooling off” period before the loan closes, known as a right-of-rescission period. The borrower can cancel the loan at any time up until midnight of the third business day in the rescission period. This year, Veterans Day — one of ten federal legal holidays that affect rescission period calculations — falls on a weekend, which leads many Notary Signing Agents to think that the day of observance when banks and government offices are closed should be considered a holiday for purposes of calculating a rescission period. Always remember: the day of observance never affects the rescission period, only the date of the actual holiday itself."


I think I will just ask TC when,if, I have a signing that will be affected by this ruling. I really want to rush to agree w/PAW's earlier post, I know NNA gives faulty info, but I have thought that if the mail does not run, holiday. Since we put holidays on Mondays, ie, no mail, banks and other lending institutions closed, then it stands to reason that Monday would not be counted as a cancellation day.

Reply by MikeC/NY on 11/1/07 8:51pm
Msg #219363

Look at Harry's 2007 rescission calendar in The Library...

.. if you don't trust the NNA.

You're right, the general rule of thumb is to only count the days when the mail is delivered, but that doesn't apply with the four holidays that fall on specific dates - New Year's Day, Independence Day, Veteran's Day, and Christmas. If the holiday falls on a Saturday, you skip both Saturday and Sunday when calculating rescission. If it falls on a Sunday, it's just another Sunday as far as rescission is concerned. The day these 4 holidays are "observed" (as far as giving time off to government workers) doesn't enter into the calculation.

I don't think asking the TC is a good idea - if we want to put ourselves out there as professionals, we should know this stuff cold. That wasn't intended as criticism, just personal opinion.

Reply by PAW on 11/1/07 9:19pm
Msg #219367

There are four (4) date specific holidays

New Years Day - January 1
Independence Day - July 4
Veterans Day - November 11
Christmas Day - December 25

These are the federal date specific holidays as published by the Office of Personnel Management. Federal law (5 U.S.C. 6103) establishes the public holidays for Federal employees. Note that most Federal employees work on a Monday through Friday schedule. For these employees, when a holiday falls on a nonworkday -- Saturday or Sunday -- the holiday usually is observed on Monday (if the holiday falls on Sunday) or Friday (if the holiday falls on Saturday).

Reg Z establishes the rules for rescission, including the calculation. Reg Z only includes Sundays and federal holidays as days not counted as a day of rescission. Therefore, if one of the four date specific holidays falls on a Sunday, the observed day (the following Monday) is not considered a federal holiday and therefore must be counted as a day of rescission.