Since the Credit Card Accountability Responsibility and Disclosure (CARD) Act was passed back in 2009, the time change has impacted various consumer disclosures financial institutions must provide, such as conforming payment notices for credit cards and consumer mortgage loans, as well as the Loan Estimate disclosure under TRID.

Conforming payment notices should be reviewed to determine whether or not the time zone reflected is impacted by daylight or standard time periods. Additionally, your prompt crediting of payments processes should be reviewed to ensure they are in compliance with Regulation Z and your conforming payment notices. These rules have been in place for a number of years, but no time like the present to ensure they are still being disclosed accurately and payments promptly credited.

For TRID transactions, a creditor is required to provide the date and time – including the applicable time zone – when: (1) a locked interest rate expires, and (2) the estimate for all other costs will expire if the consumer does not provide an intent to proceed before such date. Where these dates may cross over from the current Standard Time to Daylight Saving Time, institutions should ensure that the applicable time zone is correctly disclosed.

For example, if an institution in Florida issues a Loan Estimate on October 16th with a 45-day rate lock and the institution only provides the required ten general business days for the consumer to provide their intent to proceed, the Interest Rate Lock Date would be November 30, 2020 at 5:00 p.m. EST. The expiration of all other closing costs, however, would be October 30th, 2020, at 4:00 p.m. EDT. (note that the designated times of 4 and 5 pm are examples only and not required by Regulation Z).

Daylight Saving Time ended Sunday, November 1, 2020, at 2:00 am – turning the clocks back one hour to 1:00 am local standard time.


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