What is TRID?
TRID stands for TILA-RESPA Integrated Disclosure. TILA stands for Truth in Lending Act, and RESPA stands for the Real Estate Settlement Procedures Act. That still doesn’t answer your question, does it? So, what is TRID?
TRID refers to the new integrated disclosures for real estate transactions implemented by the Consumer Finance Protection Bureau (CFPB). On August 1st of 2015, the CFPB is consolidating existing mortgage disclosures from four forms, to two forms. The CFPB is integrating the Good Faith Estimate (GFE) and Early Truth in Lending (TIL) into one document called the Loan Estimate (LE). The HUD-1 and Final TIL will be integrated into one document called the Closing Disclosure (CD). UPDATE as of 6/25/2015: The CFPB will be issuing a proposed amendment to delay the effective date of the TRID until October 3, 2015. Review the CFPB news release here.
TRID Effective Date
The newly created TRID disclosures will apply to most closed-end consumer loans for which an application is received on or after August 1st. UPDATE as of 6/25/2015: The CFPB will be issuing a proposed amendment to delay the effective date of the TRID until October 3, 2015. Review the CFPB news release here.
What TRID Means for Consumers
TRID will reduce paper work and consumer confusion by using clear language meant to help consumers better understand the complicated mortgage loan process. The new forms will highlight information that consumers have indicated are most important including: interest rate, monthly payment and total closing costs. TRID will also provide more information on the cost of taxes and insurance and how interest rate and payments may change in the future. The TRID will also make cost estimates consumers received for services required to close the loan more reliable and require mortgage lenders to provide the CD three business days before closing on mortgage loans. Visit the CFPB website to read What the new simplified mortgage disclosures mean for consumers.
How TRID Will Affect Realtors
One aspect of the new integrated disclosures rules that will affect Realtors is that there are new time-sensitive delivery requirements for Closing Disclosures. The consumer must receive the Closing Disclosure a minimum of three business days before closing (date note is signed). In addition, there are certain changes to the loan file that can require a re-disclosure and a new 3-day minimum waiting period – changes to APR, loan product or the addition of pre-payment penalties are examples. Watch this video posted on the National Association of Realtors website: TRID Changes Coming.
Additional TRID Resources
- TILA-RESPA Integrated Disclosures, Part 1 – Overview of the Rule
- FAQs on the TILA-RESPA Integrated Disclosures, Part 2 – Various Topics
- FAQs on the TILA-RESPA Integrated Disclosures Rule, Part 3 – Completing the Loan Estimate
- TILA-RESPA Integrated Disclosures, Part 4 – Completing the Closing Disclosure
We are here to help if you have further questions. Please email firstname.lastname@example.org if you have specific questions about TRID and its implementation.
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About Inlanta Mortgage
Headquartered in Brookfield, Wisconsin, Inlanta Mortgage is a growing mortgage banking firm committed to quality mortgage lending, ethical operations and strong customer service.
Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is an agency approved lender for Freddie Mac and Fannie Mae, FHA/VA, FHA 203K and USDA. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs.
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