The TILA-RESPA Integrated Disclosure (“TRID”) rule is intended to improve the way consumers receive information about mortgage loans, both when they apply and when they are getting ready to close. The rule introduces two new disclosure forms:
- The Loan Estimate, which is delivered to the consumer three (3) business days after application
- The Closing Disclosure, which is received by the consumer at least three (3) business days prior to closing the loan.
The Loan Estimate represents a combination of the Good Faith Estimate and Initial Truth-in-Lending disclosure. It is designed to provide disclosures that will be helpful to consumers in understanding the key features, costs, and risks of the mortgage loan for which they are applying.
The Closing Disclosure represents a combination of the HUD-1 Settlement Statement and the Final Truth-in-Lending disclosure and is designed to provide disclosures that will be helpful to consumers in understanding all of the costs of the transaction. The TRID rule also amends the definition of what constitutes an “application” under RESPA, limiting the necessary elements to six items:
- Consumer’s name
- Social security number to obtain a credit report
- Property address
- Estimate of the value of the property
- The loan amount sought
The Loan Estimate and Closing Disclosure must be provided on any application on or after October 3, 2015. The GFE, HUD-1, and Truth-in-Lending forms will still need to be used for applications with an effective date prior to October 3, 2015.
Guides | Documents | FAQs
» TRID – Correspondent Guide – CLICK HERE for PDF
» TRID – Helpful Hints – CLICK HERE for PDF
» TRID – LE/CD Review Certification – CLICK HERE for PDF
» TRID – LE Checklist – CLICK HERE for PDF
» TRID – CD Checklist – CLICK HERE for PDF
» TRID – Home Loan Toolkit – CLICK HERE for PDF
» TRID Rule – TILA-RESPA Integrated Disclosure