Truth In Lending Act /Real Estate Settlement Procedures Act Integrated Disclosure (TRID)

TRID is an acronym for TILA- RESPA Integrated Disclosure (also referred to as the TILA-RESPA Rule) and applies to most closed-end Borrower credit transactions secured by real property. The rule does not apply to HELOCs, reverse mortgage, and a dwelling not attached to real property (i.e. mobile homes).

Basically we have eliminated the GFE (Good Faith Estimate) and the early TIL (Truth-in-Lending Disclosure) and have replaced with the Loan Estimate (LE).

We have also eliminated the HUD Closing statement and replaced with the Closing Disclosure (CD).

Potentially, this will add a few extra days to the already trying process of getting your loan closed.Summary of the new timelines Rule require that the consumer be given or mailed:

• Loan Estimate (LE) within 3 business days of application.
• Borrower must acknowledge the LE by signing and returning the “Intent to Proceed With Application”.
• Closing Disclosure (CD) must be given to borrower at least 3 business days prior to closing so they have time to review all numbers.
• An additional 3 business days must be given to review a revised CD if the consumer or lender make certain changes to the annual percentage rate (APR) or loan product after the initial CD is received.
• There must be at least 7 business days to review the paperwork between the time the consumer receives an LE and closing!

At some point next year it will be business as usual. For now we will be digesting the nuances of coordinating closings while determining that closing numbers are close to exact PRIOR TO CLOSING.

Stay tuned and if you or your office needs further tutelage and understanding, give me a call and we can set up a presentation.