What is TRID in Mortgage?
TRID stands for “TILA-RESPA Integrated Disclosures”, a set of two forms that combines existing forms required under the Truth in Lending Act (TILA) and the Real Estate Settlement Providers Act (RESPA).
Good Faith Estimate (GFE): estimate of fees and settlement costs
Truth-In-Lending Statement (TIL): statement of the APR and loan terms
Settlement Statement (HUD-1): statement of the actual settlement costs
Loan Estimate (LE): GFE + Initial TIL
Closing Disclosure (CD): Final TIL + HUD-1
While most of the information on these new, combined forms are the same, there are additional timing requirements that now apply to when these forms must be issued.
Loan Estimate (LE)
1st: Must be received by the borrower within 3 business days of application
Revised: Must be received by the borrower within 3 business days of a changed circumstance, and no later than 4 business days prior to signing
Once a CD is issued, revised LEs are no longer allowed.
Closing Disclosure (CD)
Must be received at least 3 business days prior to signing. Any redisclosure or corrections will require a new 3 business day waiting period.
The tolerances generally remained the same as the previous tolerances allowed for changes between the GFE and the HUD-1.
"Good Faith" Limitation (can increase or decrease, but must be provided on good faith)
Section C. Services You Can Shop For (If fee is from provider selected by borrower not on the Settlement Service Provider List)
Section F. Prepaids (Whole Section)
Section G. Initial Escrow Payment at Closing (Whole Section)
10% Cumulative Tolerance (total cannot increase more than 10%)
Section C. Services You Can Shop For (If fee is from provider selected by borrower on provided Settlement Service Provider List)
Section E. Taxes and Other Government Fees – Recording Fees and Other Taxes
Zero Tolerance (cannot increase)
Section A. Origination Charges (Whole Section)
Section B. Services You Cannot Shop For (Whole Section)
Section E. Taxes and Other Government Fees – Transfer Taxes