As most of you have already heard, the TILA RESPA Integrated Disclosure Rule (TRID) is now effective as of October 3, 2015. TRID was implemented by the CFPB (Consumer Financial Protection Bureau) to give consumers additional time to fully understand the charges associated with a particular loan and to decide if you believe you’ll be able to afford it. The new documents have been designed to help borrowers locate important key information they’ll need to know in order to make that decision. The overall goal of TRID is to make the loan more clear and easy to understand.
The Loan Estimate (LE) will highlight this important information and will be what you see at the time of the application. The Closing Disclosure (CD) will mirror the information on the LE and provide detailed accounting of the transaction. Both documents will provide the most relevant information for borrowers on the first page so that it is easy to compare. The estimated Monthly Payment, Estimated Closing Costs and Estimated Cash to Close are reflected on the LE. The Total Monthly Payment, Closing Costs and Cash to Close are reflected on the CD. If borrowers choose to make any revisions, they will be reflected on the Revised LE or Revised CD. Borrowers will have 10 days to review their LE before making any decisions. However, it would be advised they submit any revisions or approvals before 10 days to ensure the terms on the LE remain the same.