Best Practices: Federal Right of Rescission

Wednesday, November 11, is a federal holiday and should not be counted in the federal three business day right of rescission.

REMINDER – TRID

Wednesday (November 11) is a federal holiday and should not be counted when calculating the seven business day waiting period between the delivery of the initial early disclosures and the closing. Wednesday (November 11) is a federal holiday and should not be counted when calculating the 3 business day waiting period for the 3 business day CD nor if a 3 business day redisclosure of a CD is required prior to closing.

REMINDER – TEXAS HOME EQUITY AND HOLIDAY

Unless a lender has internal guidelines prohibiting a Texas Home Equity loan from closing on a Federal Holiday, a Texas Home Equity loan may close on Wednesday (November 11) if the Home Equity preclosing disclosures are given to the owners and spouses of owners prior to or on Monday, November 9, and the closing is during that title company’s normal business hours on the 11th. Verify with the title company that they will issue the T-42 and T-42.1 with no deletions (other than the agricultural exemption deletions, if applicable)

PLEASE NOTE FOR DISCLOSURE AND FUNDING:  Some lenders will not be open and will not be funding on Wednesday (November 11).  If your funding date falls on Wednesday  (November 11), please check with your lender and verify whether they will be funding on Wednesday (November 11) or Thursday (November 12).

If you have any questions, please contact one of the attorneys.

This Memorandum is provided as general information in regard to the subject matter covered, but no representations or warranty of the accuracy or reliability of the content of this information are made or implied. Opinions expressed in this memorandum are those of the author alone. In publishing this information, neither the author nor the law firm of Black, Mann & Graham L.L.P. is engaged in rendering legal services. While this information concerns legal and regulatory matters, it is not legal advice and its use creates no attorney-client relationship or any other basis for reliance on the information. Readers should not place reliance on this information alone but should seek independent legal advice regarding the law applicable to matters of interest or concern to them. The law firm of Black, Mann & Graham L.L.P. expressly disclaims any obligation to keep the content of this information current or free of errors.