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TRID: How The TILA-RESPA Integrated Disclosure Works

Sandra Visser's picture
TRID Mortgage Disclosure Form

I recently attended a seminar regarding TRID. That is the TILA-RESPA Integrated Disclosure. The basic premise is that the home buyer, now known as the Consumer, should “Know before you Owe.” The consumer has the opportunity to view the Loan Estimate (previously the Good Faith Estimate) before formally applying with a particular institution and paying an application fee. Ideally the consumer will have more opportunity to compare banks.

The bank, rather than the attorney, prepares the HUD, now called the Closing Disclosure.

The process starts about 14 days before the Consummation (aka Closing). The Creditors (once known as Lenders) gather all the figures from the Attorneys, (who at this point have not changed their title) including payoffs, fuel charges etc. The Closing Disclosures need to be in the hands of the Consumer for 3 days prior to the Consummation.

There is basically no exception to this rule.

The Consumer cannot waive the 3-day period. The Creditors also cannot waive this 3-day period under threat of fine. There could be situations that would reset the 3-day period such as if something comes up at the walk thru that could affect the homes value and adjustments need to be made.

There is also the assumption that Consummations will probably not occur later in the afternoons or on Fridays when it may be hard to contact the Creditors with questions about adjustments to the Closing Disclosures. It was also suggested to allow at least 60 days for Consummation and 45 days for loan commitment when writing offers and to let your sellers know when reviewing offers that under that for a mortgaged property may be unreasonable at this time.

Oh, and a Tolerance is now considered a Variance. I think I covered all the name changes. I do think they should have looked up the definitions before choosing some terminology.

Sandra Visser
Real Estate Agent / Ridgefield, CT
Coldwell Banker Real Estate LLC
Mobile 203-512-5156

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