TRID Basics

/TRID Basics
TRID Basics2015-07-01T14:39:14+00:00

What

The Dodd-Frank Act of 2010 mandated the combination of the Truth-in-Lending Act (TILA) loan disclosures with the Real Estate Settlement Procedures Act (RESPA) Good Faith Estimate and HUD-1 Settlement Statement disclosures.

When

Applies to most loan applications received by lenders or mortgage brokers on or after October 3, 2015.

How

The Consumer Financial Protection Bureau (CFPB), created by the Dodd-Frank Act, issued final rules, and created two new forms with delivery requirements.

Types of Loans Covered

Applies to most closed-end consumer mortgage loans.

Does not apply to:
– Home equity lines of credit
– Reverse mortgages
– Mortgages secured by mobile homes or dwellings not attached to real property (but does apply if the mobile home is attached to real property)
– Creditors that make five or fewer mortgage loans in one year
– Certain narrowly defined subordinate special purpose loans
– Loans that are not consumer loans, such as commercial or business purpose loans

Two Primary Forms Created

Loan Estimate (LE)
– Must be provided to consumer within 3 business days after submission of loan application.
– Replaces the initial Truth-in-Lending (TIL) and Good Faith Estimate (GFE).

Closing Disclosure (CD)
– Consumer must receive at least 3 business days before consummation of the loan.
– Replaces the final Truth-in-Lending (TIL) disclosures and HUD-1 settlement statement.

More Information
Visit www.stewart.com/cfpb to learn more.