[jlsnyder]

We have always counted Saturdays as a business day since our main bank and 2 branches are all open for business that day. However, the loan department and lending staff do not work on Saturdays, so now my supervisor thinks that we should not count Saturday as a business day. He found some information that said Saturdays are only counted as a business day if it is “a day in which the offices of the business are open to the public for carrying on SUBSTANTIALLY all of the entity’s business functions”. He’s saying that unless our lending departments are open then we are not open for doing substantially all our our business, as lending is a big part of our business. Our loan officers are basically on an “as needed” basis for working on Saturdays. Mostly they don’t work that day but if a customer needs something and Saturday is the only day they can come in, then they are to accommodate the customer and come in to help them.
Please let me know how the rules apply to our situation or if you need further clarification of my scenario.

Thank you so much for your help!

[jholzknecht]

Your supervisor is exactly half right. Section 1026.2 of regulation Z states, “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 §§ 1026.15 and 1026.23, and for purposes of §§1026.19(a)(1)(ii), 1026.19(a)(2), 1026.19(e)(1)(iii)(B), 1026.19(e)(1)(iv), 1026.19(e)(2)(i)(A), 1026.19(e)(4)(ii), 1026.19(f)(1)(ii), 1026.19(f)(1)(iii), 1026.20(e)(5), 1026.31, and 1026.46(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.”

For purposes of the three-day delay in providing funds on a rescindable transaction, the specific rule is used. Saturday is a business day.

For purposes of TRID:
• The loan estimate must be provided within three business days of receiving the application. The days are calculated using the general rule, so Saturday is not a business day in your case, since your institution is not open for substantially all of your services on Saturday.
• The lender must wait seven business days after delivery of the Loan Estimate to close the loan. For purposes of the seven day delay of closing, the specific rule is used, so Saturday is a business day.

The regulation shouldn’t be this complicated, but unfortunately it is.

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