For which loan types is the Good Faith Estimate no longer required?

The Good Faith Estimate (GFE) is no longer required for TRID-covered loans due to the implementation of the TILA-RESPA Integrated Disclosure (TRID) rule. TRID simplified the disclosure process for mortgage loans and merged the GFE and the Truth in Lending (TIL) disclosures into two new forms: the Loan Estimate (LE) and the Closing Disclosure (CD).

Under TRID, all most closed-end mortgages, including conventional, FHA, and VA loans, fall under this new regulation, which eliminates the necessity of providing a separate GFE. Instead, borrowers receive a Loan Estimate, which serves a similar purpose of conveying important loan information but is designed to be more user-friendly and informative. This change enhances transparency and makes it easier for borrowers to compare loan offers.

This shift not only reduces paperwork but also enhances the clarity and consistency of information provided to borrowers, fostering a better understanding of their loan terms and costs upfront.