TRID, an acronym for TILA-RESPA Integrated Disclosure, refers to a set of rules and forms designed to streamline and clarify the mortgage process for homebuyers in the United States. Implemented by the Consumer Financial Protection Bureau (CFPB), TRID is a consolidation of the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA). Its primary aim is to make mortgage terms, costs, and risks clearer to consumers.
Key Elements of TRID:
Key Elements of TRID:
- Loan Estimate Form: Replaces the initial Truth-in-Lending disclosure and the Good Faith Estimate. It must be provided to borrowers within three business days of submitting a mortgage application. This form summarizes key loan terms, estimated loan and closing costs, and other critical information.
- Closing Disclosure Form: Replaces the final Truth-in-Lending statement and the HUD-1 Settlement Statement. It must be provided to the borrower at least three business days before closing. This document finalizes the loan terms and closing costs, allowing borrowers to review final details before concluding the mortgage process.
- Mortgage Types: TRID rules generally apply to most closed-end consumer mortgages. This includes most home purchase loans, refinances, and construction loans. However, it does not apply to HELOCs (Home Equity Lines of Credit), reverse mortgages, or mortgages secured by a mobile home or by a dwelling not attached to real property (land).
- Lenders and Financial Institutions: All lenders and financial institutions that offer mortgage loans covered under TRID must comply with these disclosure requirements.
- Transparency and Understanding: TRID aims to enhance the understanding of mortgage terms and costs, ensuring consumers can more easily compare loan offers from different lenders.
- Informed Decision Making: By providing clear and timely information, TRID helps borrowers make informed decisions regarding their mortgage.
- Timely Disclosures: Lenders must strictly adhere to the timing for the Loan Estimate and Closing Disclosure forms. Failure to provide these forms within the specified timelines can result in penalties.
- Accuracy of Information: The information in the disclosures must be accurate. Significant inaccuracies can lead to a requirement for re-disclosure, and potential delays in the closing process.
- Closing Timeline: Due to the three-day review period required for the Closing Disclosure, the mortgage closing process might take longer under TRID rules.
- Communication and Coordination: Lenders, real estate agents, and closing agents must coordinate closely to ensure compliance with TRID requirements, particularly regarding the timing of disclosures.
TRID Calendar
when TRID Disclosures are made by
Electronic, Courier or Hand Delivery
Closing
Monday
delivery by
preceding
Thursday
Closing
Tuesday
delivery by
preceding
Friday
Closing
Wednesday
delivery by
preceding
Saturday
Closing
Thursday
delivery by
preceding
Monday
Closing
Friday
delivery by
preceding
Tuesday
Closing
Saturday
delivery by
preceding
Wednesday
when TRID Disclosures are made by
Mail
Closing
Monday
delivery by
preceding
Monday
Closing
Tuesday
delivery by
preceding
Tuesday
Closing
Wednesday
delivery by
preceding
Wednesday
Closing
Thursday
delivery by
preceding
Thursday
Closing
Friday
delivery by
preceding
Friday
Closing
Saturday
delivery by
preceding
Saturday
Legal Citation
*12 CFR § 1026.19(f) Mortgage loans secured by real property - final disclosures -
(1)Provision of disclosures -
(i)Scope. In a closed-end consumer credit transaction secured by real property, other than a reverse mortgage subject to § 1026.33, the creditor shall provide the consumer with the disclosures in § 1026.38 reflecting the actual terms of the transaction.
(ii)Timing -
(A)In general. Except as provided in paragraphs (f)(1)(ii)(B), (f)(2)(i), (f)(2)(iii), (f)(2)(iv), and (f)(2)(v) of this section, the creditor shall ensure that the consumer receives the disclosures required under paragraph (f)(1)(i) of this section no later than three business days before consummation.
…
(iii)Receipt of disclosures. If any disclosures required under paragraph (f)(1)(i) of this section are not provided to the consumer in person, the consumer is considered to have received the disclosures three business days after they are delivered or placed in the mail.
…
(iv)Consumer's waiver of waiting period before consummation. If the consumer determines that the extension of credit is needed to meet a bona fide personal financial emergency, the consumer may modify or waive the three-business-day waiting period under paragraph (f)(1)(ii)(A) or (f)(2)(ii) of this section, after receiving the disclosures required under paragraph (f)(1)(i) of this section. To modify or waive the waiting period, the consumer shall give the creditor a dated written statement that describes the emergency, specifically modifies or waives the waiting period, and bears the signature of all consumers who are primarily liable on the legal obligation. Printed forms for this purpose are prohibited.
(1)Provision of disclosures -
(i)Scope. In a closed-end consumer credit transaction secured by real property, other than a reverse mortgage subject to § 1026.33, the creditor shall provide the consumer with the disclosures in § 1026.38 reflecting the actual terms of the transaction.
(ii)Timing -
(A)In general. Except as provided in paragraphs (f)(1)(ii)(B), (f)(2)(i), (f)(2)(iii), (f)(2)(iv), and (f)(2)(v) of this section, the creditor shall ensure that the consumer receives the disclosures required under paragraph (f)(1)(i) of this section no later than three business days before consummation.
…
(iii)Receipt of disclosures. If any disclosures required under paragraph (f)(1)(i) of this section are not provided to the consumer in person, the consumer is considered to have received the disclosures three business days after they are delivered or placed in the mail.
…
(iv)Consumer's waiver of waiting period before consummation. If the consumer determines that the extension of credit is needed to meet a bona fide personal financial emergency, the consumer may modify or waive the three-business-day waiting period under paragraph (f)(1)(ii)(A) or (f)(2)(ii) of this section, after receiving the disclosures required under paragraph (f)(1)(i) of this section. To modify or waive the waiting period, the consumer shall give the creditor a dated written statement that describes the emergency, specifically modifies or waives the waiting period, and bears the signature of all consumers who are primarily liable on the legal obligation. Printed forms for this purpose are prohibited.
Atlanta Title Company LLC
945 East Paces Ferry Road
Suite 2250, Resurgens Plaza
Atlanta, GA 30326
945 East Paces Ferry Road
Suite 2250, Resurgens Plaza
Atlanta, GA 30326