Trid

Section: TRID and Federal Financing Regulations Estimated study time: 45 minutes Content: TRID (TILA-RESPA Integrated Disclosure) is the federal rule that combined the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA) disclosures into two standardized forms: the Loan Estimate (LE) and the Closing Disclosure (CD). TRID was implemented by the CFPB (Consumer Financial Protection Bureau) and applies to most closed-end consumer mortgage loans (excluding HELOCs, reverse mortgages, and mobile home loans not attached to land). The purpose of TRID is to help consumers understand the costs of their mortgage loan and compare offers from multiple lenders before committing. The Loan Estimate (LE) must be provided to the borrower within three business days of loan application and at least seven business days before closing. The LE contains three pages of information: the loan terms and projected payments (principal, interest, taxes, insurance), closing costs organized by service type, and comparisons of total loan costs. Certain charges on the LE are subject to tolerance rules — they cannot increase at closing beyond specified limits. Zero-tolerance items (that cannot increase at all) include origination charges, transfer taxes, and fees for required services the borrower was not permitted to shop for. Ten-percent-tolerance items include title services and recording fees when the borrower is permitted to shop. Items outside the tolerance categories (insurance, prepaids) may change without limit. If a valid changed circumstance occurs (rate change, change in loan program, new information), the lender may issue a revised LE restarting the timing requirements. The Closing Disclosure (CD) must be provided to the borrower at least three business days before closing. The CD is a five-page document detailing all final loan…