Which laws were amended to create the new TRID rule?

The new TRID rule, established in 2015, was formed by amending specific sections of the Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA). The integration of these laws aimed to streamline and enhance the mortgage loan disclosure process, ensuring that consumers have better understanding and clearer information about their loan terms and costs.

Specifically, sections 4 and 5 of RESPA were revised to work in conjunction with TILA updates, resulting in a simplified disclosure process that combines the Loan Estimate and Closing Disclosure forms. This amendment significantly improved the clarity and accessibility of information that consumers receive when taking out a mortgage.

Understanding the relationship between TRID, RESPA, and TILA is crucial for mortgage professionals, as it directly affects how they must prepare and present loan documents to borrowers, ensuring compliance with federal regulations.