Posted by Wishie on 12/5/10 3:25pm
Msg #364041
Last day to fund in December??
Anybody know??
thanks
| Reply by Teresa/FL on 12/5/10 3:31pm
Msg #364042
Friday, 12/31 n/m
| Reply by MW/VA on 12/5/10 3:51pm
Msg #364046
Which means EOM will be 12-27. The last two weeks of Dec.
are usually very busy for those who take work during the holidays.
| Reply by C. Rivera Chicago Notary Services on 12/5/10 4:49pm
Msg #364051
If closing on 12/28 RTC ends 12/31....last day in Dec. n/m
| Reply by Linda_H/FL on 12/5/10 5:09pm
Msg #364052
Last day to sign is 12/27 to fund in Dec AND 2010 n/m
| Reply by C. Rivera Chicago Notary Services on 12/5/10 5:32pm
Msg #364054
last day to sign and fund in Dec is 12/28/10...not 27th! n/m
| Reply by Linda_H/FL on 12/5/10 6:56pm
Msg #364067
Cari...better recalculate - it's 12/27 to sign
rescission period ends midnight 12/30 - fund 12/31
| Reply by PAW on 12/5/10 7:18pm
Msg #364069
Sorry, Cari, but you are mistaken.
Last day of the month is Friday 12/31. In order to be able to fund on that day, the rescission period must expire on Thursday 12/30 (at midnight). In order for the rescission period to be 3 business days, the rescission period must commence on 12/28 (at 12:01 AM), the day after signing. Thus, the signing (execution of documents) must be completed by midnight, Monday, 12/27.
To easily figure LSD (Last Signing Date), simply count 4 business backwards from the last business day of the month. (12/31 - 4 = 12/27)
| Reply by JanetK_CA on 12/5/10 8:09pm
Msg #364073
Maybe not that either?
I'm wondering if it might complicate things further this year with Christmas and New Years Day falling on a Saturday, which means many offices will observe those holidays on the Friday before. I'm guessing this could impact the ability of the settlement agents to fund, etc. on 12/31. County Recorders' offices may well be closed on that day.
| Reply by Roger_OH on 12/5/10 9:10pm
Msg #364074
Federal Holiday observed 12/31; most businesses closed? n/m
| Reply by PAW on 12/6/10 6:56am
Msg #364096
"Observed" vs "Actual" Federal Holiday
For rescission purposes, according to Reg Z, only "Actual" Federal Holidays (and Sundays) are not counted as a day of rescission. (12CFR226)
The supplement (Supp I) to the regulation explains in detail, how business days (days counted as rescission days) are counted:
Supplement I to Part 226-Official Staff Interpretations
Introduction
1. Official status. This commentary is the vehicle by which the staff of the Division of Consumer and Community Affairs of the Federal Reserve Board issues official staff interpretations of Regulation Z, as revised effective April 1, 1981. Good faith compliance with this commentary affords protection from liability under 130(f) of the Truth in Lending Act. Section 130(f) (15 U.S.C. 1640) protects creditors from civil liability for any act done or omitted in good faith in conformity with any interpretation issued by a duly authorized official or employee of the Federal Reserve System.
Section 226.2-Definitions and Rules of Construction
2(a)(6) Business day.
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 C. Rivera Chicago Notary Services on 12/5/10 5:33pm
Msg #364055
so wrong... n/m
| Reply by SReis on 12/5/10 6:03pm
Msg #364059
I hope you mean you are so wrong because loan must FUND
by the end of the month. Last signing day is calculated 4 business days from the last FUNDING day of the month. It doesn't matter if the RTC expires on the last day because that would mean the loan would not fund until the next day, which would be the 1st of the following mth or yr in this case.
| Reply by JanetK_CA on 12/5/10 6:20pm
Msg #364063
Re: I hope you mean you are so wrong because loan must FUND
Agreed. Interestingly though, I seem to be seeing more and more closing agents seemingly extending the EOM by providing a credit on the HUD for interest on the new loan for the first day or two in the new month before funding, so that the first payment date still matches what is on the Note. Nonetheless, this is obviously not something we should count on, just something for us to be aware of. (This may only work for escrow states, though, no?)
| Reply by PAW on 12/6/10 7:02am
Msg #364097
Re: I hope you mean you are so wrong because loan must FUND
By established policy, many lenders allow the loan to fund up to 5 days (not counting Sundays) at the beginning of a month, but count the closing in the previous month. Thus, if the lender has such a policy, the last day to fund may be 1/5 allowing for a signing or execution of the documents to take place on 12/31. The RTC would expire on 1/5 allowing for funding on 1/6, but 'count' the closing in December.
| Reply by C. Rivera Chicago Notary Services on 12/6/10 7:18am
Msg #364098
yes SREIS as I saw later after posted funding the issue...:( n/m
| Reply by jnew on 12/5/10 7:46pm
Msg #364071
Re: so wrong...
Also don't forget that Monday, January 3 counts as a business day for rescission purposes even though many companies and government agencies are closed because the holiday is on the weekend. A loan closed on the 28th of December will have a disbursement date of Jan. 3, 2011. A loan closed on the 31st of December will have a disbursement date of Jan. 6, 2011.
| Reply by James Dawson on 12/6/10 2:34am
Msg #364087
Re: If closing on 12/28 RTC ends 12/31....last day in Dec.
I think Cari and Linda are talking Apples and Oranges...RTC last day Vs. funding date. My .02
| Reply by MichiganAl on 12/6/10 2:43am
Msg #364089
I don't think so
Cari clearly says..."last day to sign and fund in Dec is 12/28/10...not 27th!" Wrong.
| Reply by C. Rivera Chicago Notary Services on 12/6/10 7:22am
Msg #364099
ur right James... n/m
| Reply by MichiganAl on 12/6/10 2:40am
Msg #364088
If cls 12/28, RTC ends MIDNIGHT 12/31, won't fund until Jan
Light bulb coming on yet?
Last day to sign is 12/27 for December funding.
| Reply by ReneeK_MI on 12/6/10 5:54am
Msg #364091
info from the sources, stuff NSA's should read at least once
Days of rescission (NOT date of funding, but just days to count for rescission) are defined within the TILA:
"(6) "Business day" means a day on which the creditor's offices are open to the public for carrying on substantially all of its business functions. However, for purposes of rescission under §§ 226.15 and 226.23, and for purposes of § 226.19(a)(1)(ii), § 226.19(a)(2), and § 226.31, and § 226.46(d)(4), the term means all calendar days except Sundays and the legal public holidays specified in 5 U.S.C. 6103(a), such as New Year's Day, the birthday of Martin Luther King, Jr., Washington's Birthday, Memorial Day, Independence Day, Labor Day, Columbus Day, Veterans Day, Thanksgiving Day, and Christmas Day."
LINK: http://www.fdic.gov/regulations/laws/rules/6500-1400.html#fdic65002262
**You will note reference is made specifically to 5 U.S.C. 6103(a), which provides the following:
(a) The following are legal public holidays:
New Year’s Day, January 1.
Birthday of Martin Luther King, Jr., the third Monday in January.
Washington’s Birthday, the third Monday in February.
Memorial Day, the last Monday in May.
Independence Day, July 4.
Labor Day, the first Monday in September.
Columbus Day, the second Monday in October.
Veterans Day, November 11.
Thanksgiving Day, the fourth Thursday in November.
Christmas Day, December 25
**It is in the NEXT paragraph, 5 U.S.C. 6103(b) where it states:
(b) For the purpose of statutes relating to pay and leave of employees, with respect to a legal public holiday and any other day declared to be a holiday by Federal statute or Executive order, the following rules apply:
(1) Instead of a holiday that occurs on a Saturday, the Friday immediately before is a legal public holiday for—
(A) employees whose basic workweek is Monday through Friday; and
(B) the purpose of section 6309 [1] of this title. (my note: this relates to USPS)
LINK: http://www.law.cornell.edu/uscode/5/usc_sec_05_00006103----000-.html
SUMMARY:
Federally defined "public Holidays" and Sundays are not counted in the rescission. When that holiday falls on a Sat or Sun, the preceding Friday or following Monday is considered ONLY as it relates to pay & leave policies for Fed (& usually state/municipal) employees, but does NOT relate to rescission periods. (For example, there IS USPS service on Dec 24th & Dec 31st.)
As for funding dates - the loan can fund any date that the settlement agent is working, their bank is open & funds can actually be disbursed. Even if funding date was a Fed Holiday, if they can PROVE they disbursed (w/ a ledger sheet), all is good - but good luck with having their bank open on that day. Just saying, if it was - they can disburse. This becomes of interest to us, in trying to nail down the very last day to close a refi & disburse w/in that month.
Just as a cross-reference (I never trust anyone's rescission calendar), here is Chicago Title's 2010 calendar. Note that they show the 24th as "Holiday Christmas Day", but that date IS included in the rescission. Likely they will have the day off, which means loans won't be disbursing on that date.
http://www.chicagotitleconnection.com/Images2010/PDF/Rescission%20Calendar%202010.pdf
| Reply by James Dawson on 12/6/10 10:01am
Msg #364107
Tnks Renee for the effort you put into this to enlighten us! n/m
| Reply by Pat/CA on 12/6/10 12:16pm
Msg #364121
Yes Renee thanks! Good thing it's beginning of month! LOL n/m
| Reply by MW/VA on 12/6/10 9:17am
Msg #364106
OMG. No wonder some people need a recission calendar. LOL n/m
| Reply by Pat/CA on 12/6/10 12:47pm
Msg #364124
I just always trust the date that's in the package! LOL j/k! n/m
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