TRID: What You Need to Know – NMP Skip to main content

TRID: What You Need to Know

Joni Pilgrim
Oct 27, 2015

Beginning Oct. 3, 2015, requirements for paperwork filings will officially change for the newly combined Truth-in-Lending Act (TILA) and Real Estate Settlement Procedures Act (RESPA). The new “Know Before You Owe” Rule will also be known as the “TILA-RESPA Integrated Disclosure Rule (TRID).”

Mortgage lenders and settlement services providers, including appraisal management companies (AMCs), will be required to implement changes in order to comply with the rules of the new disclosures. According to the Consumer Finance Protection Bureau (CFPB), for the consumer, the new disclosures are easier to understand than those currently in use. The Loan Estimate they will receive after applying for a mortgage and the Closing Disclosure are designed to work with each other, eliminating overlapping and inconsistent language.

TRID will apply to most closed-end consumer real estate credit transactions. The new rule does not apply to home equity lines of credit (HELOCs), reverse mortgages or mortgages secured by a mobile home. The creditor will be required to provide the consumer with Good Faith Estimates (GFEs) of credit costs and transaction terms and provide the Loan Estimate within three business days of the receipt of the consumer’s loan application.

The new Loan Estimate must contain, in writing, an estimate of credit costs and transaction terms. If unavailable or unknown, the creditor must make the disclosure based on reasonably available information. The Loan Estimate must be delivered to the consumer no later than three business days after receipt of the application. If the creditor determines that the consumer’s application will not or cannot be approved on the terms requested, or if the consumer withdraws the application within that period, the creditor does not have to provide the Loan Estimate.

The Loan Estimate includes tables addressing the Loan Terms, Projected Payments and Costs at Closing. A detailed breakdown of closing costs, a Comparisons Table, along with an Other Considerations Table that includes information regarding appraisal, homeowner's insurance, and late payment fees; and sections pertaining to assumptions, refinancing and servicing of the loan are also included.

For loans that proceed to closing, creditors must provide a new final disclosure reflecting the actual terms of the transaction called the Closing Disclosure. The form integrates and replaces the existing HUD-1 and the final TIL disclosure for these transactions. The creditor is required to ensure that the consumer receives the Closing Disclosure no later than three business days before consummation of the loan. The Closing Disclosure generally must contain the actual terms and costs of the transaction.

It is important to understand that the lending process could be jeopardized without strict adherence to and understanding of these new procedures.

Joni Pilgrim is the founder and director of sales and business development at National Appraisal Network. For more information, visit or call (888) 760-8899.

This article originally appeared in the September 2015 print edition of National Mortgage Professional Magazine. 

Oct 27, 2015
Manufactured Housing: The New Affordable Alternative

While the housing market is grappling with widespread affordability and supply, manufactured homes are gaining ground as a new alternative. 

Industry News
Dec 03, 2021
Angel Oak Home Loans Opens 3 New Branches

Continues expansion in Western U.S. with new branches in California, Nevada & Utah.

Industry News
Dec 02, 2021
Open Mortgage Names New President

Joe Stephenson, formerly of American Advisors Group, to lead daily operations.

Industry News
Dec 01, 2021
Homepoint Expands Refinance Program Offerings

Now offers Freddie Mac’s new refinance option, Refi Possible, making it easier for many homeowners with a Freddie Mac-owned mortgage to reduce their interest rate.

Industry News
Nov 30, 2021
Non-QM Lender Deephaven Hires Business Development VP

Dallas-based Tim Fisher charged with growing Deephaven’s correspondent business In Texas and surrounding states

Industry News
Nov 30, 2021
Biden Reappoints Powell As Federal Reserve Chairman

A signal that The Fed will continue its policies as inflation surges and economic uncertainty spikes due to an emerging variant of the coronavirus. 

Industry News
Nov 29, 2021