How Federal Holidays Affect Mortgage Process For Borrowers

How Federal Holidays Affect Mortgage Process And Closing For Borrowers

This Article Is About How Federal Holidays Affect Mortgage Process For Borrowers

Federal Holidays can affect the mortgage process. Many federal holidays are closed for operations. There are instances where mortgage companies work during federal holidays because they do not delay the mortgage process and/or delay closings. However, there are instances when the banking system is closed and wires cannot get done. In this article, we will discuss and cover how federal holidays affect the mortgage process.

Holidays That Can Delay The Mortgage Process

Can holidays delay the mortgage process

Holidays are a great time to come together as Americans and enjoy time with our families. Many of us get a break from work. Most Americans do not know How Federal Holidays Affect the Mortgage Process. In this blog, we will detail what are federal holidays and How Federal Holidays Affect the Mortgage Process. We all know the major holidays like Thanksgiving and Christmas but there are more holidays that come into play and How Federal Holidays Affect the Mortgage Process.

How Federal Holidays Affect Mortgage Process And What Is Considered Federal Holidays

What holidays are considered Federal banking holidays? 

Here is a list of federal banking holidays for the calendar year of 2021:  

  • January 1 – New Year’s Day 
  • January 21 – Martin Luther King Jr Day 
  • February 18 – Washington’s Birthday / President’s Day  
  • May 27 – Memorial Day 
  • July 4 – Independence Day 
  • September 2 – Labor Day 
  • October 14 – Columbus Day 
  • November 11 – Veterans Day 
  • November 28 – Thanksgiving Day 
  • December 25 – Christmas Day  

How Federal Holidays Affect Mortgage Process? We will discuss this topic in the following paragraph below.

Waiting Period Guidelines And How Federal Holidays Affect Mortgage Process

On October 3rd, 2015, new mortgage laws were put into place.

These laws have the acronym TRID. TRID stands for TILA-RESPA Integrated Disclosure (TILA – Truth In Lending Act. RESPA – Real Estate Settlement Procedures Act). This disclosure was designed to help consumers be more informed of their financial decision. This very clearly lays out the terms and fees of your new mortgage. They also have implemented waiting periods for closing. The waiting period is designed to give you time to make an educated decision on entering into the mortgage.

Mortgage Disclosures And How Federal Holidays Affect Mortgage Process

How Federal Holidays Affect Mortgage Process

An explanation of how the waiting periods work is below: 

  • After you lock your interest rate on your mortgage, you will receive an updated loan estimate (LE) from the mortgage company
  • You must acknowledge this on the electronic signature portal
  • On the following calendar day (at the soonest) you will be sent a closing disclosure (CD) that goes over the final figures of your loan
  • Once you receive your closing disclosure, the fees cannot go up
  • They may only go down into your favor
  • All parties on the mortgage must sign the closing disclosure
  • Once that is signed, a three-day clock starts before you are allowed to close on your mortgage
  • If you do not use electronic signatures, 7 days must elapse from the CD being sent
  • The “mailbox rule” allows you to close on the loan)

In the mortgage industry, Sundays are the only days that do not count for the waiting periods. Saturday’s do count!  

How Federal Holidays Affect Mortgage Process And Come Into Effect

In short, treat Federal banking holidays like a Sunday. They do not count towards your waiting period. All federal banking holidays listed above WILL delay your 3-day waiting period. Let’s go over an example.  

February 2019 Federal Holidays impact on mortgage closings

As you can see from the example above, 5 days have elapsed for the 3-day waiting. We want to reiterate that Sundays and federal banking holidays do not count.  

Refinance Rescission Period

Any time you complete a refinance on your primary residence, above and beyond the 3-day waiting period for TRID, you have a 3-day right to rescission.

  • This gives you 3 full business days after closing to cancel your mortgage transaction
  • Sometimes clients get a change of heart and decide the refinance is not in their best interest
  • Although this is not common, is a right granted to you by the mortgage agencies

Once again, Sundays and federal banking holidays do not count or the 3-day rescission. 

Qualifying For Mortgage With Direct Lender With No Overlays

How to qualify for a mortgage with a direct lender without overlays

Mortgage guidelines are constantly changing. It is important to feel comfortable with your mortgage loan officer. Many loan officers in today’s market are not educated on guidelines. They are stuck in their old ways and do not choose to learn the guidelines that are ever-changing. This is not the case at Gustan Cho Associates. We pride ourselves on being up to date on all mortgage guidelines. We are also available 7 days a week, even on Sundays and federal banking holidays. During the process we understand questions will arise, our loan officers are always available via phone, text, or email. For more information on federal banking holidays are other mortgage guidelines, please contact Mike Gracz on 630-659-7644 or text us for faster response. Or email me directly on mgracz@gustancho.com. Either I or one of my highly-trained loan officers will assist you with all your mortgage needs. Gustan Cho Associates is a mortgage company licensed in multiple states with no lender overlays on government and conforming loans. We are also experts on non-QM and bank statement loans for self-employed borrowers. 

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