Posted by Art_MD on 12/20/05 8:56pm
Msg #83769

Holidays and RTC FYI - some BAD info ???

Mortgage docs.com sent an e-mail saying (I cut and pasted it so these are the exact words)

Just a friendly reminder that Monday (12/26/2005) is considered an observed holiday for Christmas.
Therefore, please remember to EXCLUDE this day when calculating the dates on the Notice of Right to Cancel (NRTC) forms.


Don't think so.....

Art

Reply by SBC FINANCIAL SERVICES, INC. on 12/20/05 9:03pm
Msg #83771

Art,

I likewise received the email...but I am pretty sure that Monday December 26 and January 2 are national holidays with all banks and us offices closed and therefore SHOULD BE EXCLUDED
from the 3 business days.

Reply by Art_MD on 12/20/05 9:10pm
Msg #83772

Banks may be on holiday.
Read 80816 from PAW ... he seems t have it pretty clear.

Art

Reply by PAW_Fl on 12/20/05 9:47pm
Msg #83775

Definitely bad info. - See Art's post above.

Reg Z is clear, but apparently not clear enought, so the Compliance Headquarters issued the clarification that makes it crystal clear. Dec. 26 and Jan. 2 are NOT holiidays and MUST BE COUNTED as days of rescission, unless the lender chooses not to count those days. (Many lenders will be extending the expiration dates by one day.)

The following is published as Supplement I to Part 226 of the US Code (Reg Z):

2. Rescission rule. A more precise rule for what is a business day (all calendar days except Sundays and the federal legal holidays listed in 5 U.S.C. 6103(a)) applies when the right of rescission or mortgages subject to §226.32 are involved. (See also comment 31(c)(1)–1.) Four federal legal holidays are identified in 5 U.S.C. 6103(a) by a specific date: New Year's Day, January 1; Independence Day, July 4; Veterans Day, November 11; and Christmas Day, December 25. When one of these holidays (July 4, for example) falls on a Saturday, federal offices and other entities might observe the holiday on the preceding Friday (July 3). The observed holiday (in the example, July 3) is a business day for purposes of rescission or the delivery of disclosures for certain high-cost mortgages covered by §226.32.

Reply by SignerCA on 12/20/05 9:45pm
Msg #83774

According to the NNA's rescission calendar, 12/26, is not a holiday.

Reply by SBC FINANCIAL SERVICES, INC. on 12/20/05 9:53pm
Msg #83778

Art and everyone else,

Thanks for bringing this to my attention. I finally found via a search a solid definitive answer backing you up ........... "Also, there are four date-specific holidays that are not business days: New Year's Day, Independence Day, Veterans Day, Christmas Day. With respect to those four, the Reg Z commentary was changed in 2002. Under the revised Commentary, if any of those four date-specific holidays fall on a weekend, only the date specified in the statute is considered a legal holiday, even if government offices are closed on the previous Friday or the following Monday to observe the holiday. The "observed holidays" don't count for purposes of these four. The only thing that counts is the actual date, and if it is on a weekend, the holiday will have no effect on business day computations under Reg Z."

Reply by Bob_Chicago on 12/20/05 11:28pm
Msg #83792

Good Info in this case

The lender that they are referring to recognizes
12-26 and 1-2 as holidays for RTC calculation
as is the lender's right.
The recission time may be extended by a lender beyond
the miniimum reqmt, but may not be shortened.
The info was directed to NSAs doing signings for them
and was correct in this case.
I do not believe that the communication was intended
for public dissemination.
I am aware of other lenders counting 12-26 and 1-2
as a holiday for RTC purposes.
Your best bet is to follow the reqmts of the lender for
each individual signing, if not sure, ask, if you can't reach anyone,
I believe that it is safer to give too much RTC time as
opposed to not enough
I am, of course, referring to RTC dates calculated by a RTC
without benefit of a RTC calendar included in the pkg
I am not suggesting changing preprinted dated on RTC
forms or not following a lender's RTC calendar included in
a pkg

Reply by ReneeK_MI on 12/21/05 3:53am
Msg #83808

Re: Good Info in this case

Well said, Bob. Additionally - if the banks are closed, loan can't fund, funding date will then effectively adjust recission period. So, loans that would otherwise be FUNDING on Monday, won't be funding until Tuesday.

Reply by PAW_Fl on 12/21/05 12:06pm
Msg #83881

Re: Good Info in this case

The funding date only needs to follow the rescission expiration date. So a lender may not adjust the rescission date, but will adjust the funding date to Tuesday. Think of all the loans you've done where the expiration date is on a Friday. Do you think they were funded on Saturday? Probably not. Funding took place on the following Monday. So, extending the funding date does not necessarily extend the rescission expiration date.

Reply by ReneeK_MI on 12/22/05 4:12am
Msg #84047

I stand corrected =)

yikes, I do try to be careful, but you are right - two different issues.

Reply by Rick_NY on 12/21/05 6:41pm
Msg #83960

OK, so if 12/26 is counted as, say, the third rescission day, and the USPS is closed, (which I believe it is) doesn't that make it kind of difficult to cancel, unless the person sends a telegram? Do telegrams even still exist??? :-)

http://www.usps.com/communications/news/uspscalendar.htm

Reply by PAW_Fl on 12/21/05 9:09pm
Msg #83976

It doesn't make any difference if the post office is closed that day. Think of Saturdays, actually any day, post offices are not open until midnight, so getting this postmarked prior to midnight can be difficult. If you read the Code, it states: "To exercise the right to rescind, the consumer shall notify the creditor of the rescission by mail, telegram, or other means of written communication. Notice is considered given when mailed, or when filed for telegraphic transmission, or, if sent by other means, when delivered to the creditor's designated place of business."

Though not specifically addressed, I wonder if an email would suffice. The email routing can be traced to show when it was delivered to the business email server. I'll leave it up to the courts for that decision.

Reply by Rick_NY on 12/22/05 9:39am
Msg #84079

I have only seen fax instructions for canceling, not email.
As you say, it's for the courts to decide about email, and some day they undoubtedly will.