What does the acronym TRID stand for?

The acronym TRID stands for TILA RESPA Integrated Disclosures. This regulation, implemented by the Consumer Financial Protection Bureau (CFPB), combines two important pieces of legislation in the mortgage industry: the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA). The aim of TRID is to ensure that consumers receive clear and concise information about their mortgage loans, particularly regarding the costs associated with borrowing.

Under TRID, lenders are required to provide two primary disclosure forms: the Loan Estimate and the Closing Disclosure. The Loan Estimate must be provided to borrowers within three business days of receiving their application, detailing the loan terms, projected payments, and closing costs. The Closing Disclosure, on the other hand, is provided three days before closing and outlines the final loan terms and costs, allowing borrowers to compare the terms they were quoted earlier.

By integrating these disclosures, TRID seeks to improve transparency in the loan process, enabling consumers to make informed decisions when securing financing for their homes. This integration simplifies the borrowing process and reduces confusion among borrowers, which is crucial in a marketplace where clarity and transparency are essential.