Which sections of RESPA were amended by TRID?

The correct answer identifies the specific sections of the Real Estate Settlement Procedures Act (RESPA) that were revised as a result of the TILA-RESPA Integrated Disclosure (TRID) rule. TRID was implemented to streamline the mortgage process and enhance consumer understanding of mortgage-related costs.

Sections 4 and 5 of RESPA were amended to align with the new disclosure requirements introduced by TRID. Section 4 pertains to the requirements for a Loan Estimate, which provides clear information on the estimated closing costs and details of the mortgage loan. This modification aims to provide borrowers with crucial information in a more cohesive and accessible format.

Section 5 deals with the requirements surrounding the Closing Disclosure, which is meant to inform consumers about their final loan terms and actual closing costs in a straightforward manner prior to the closing of the loan. By revising these sections, TRID seeks to improve transparency and ensure borrowers have the necessary information to make informed decisions regarding their mortgage.

Each element of this amendment underscores the goal of simplifying the loan process and safeguarding consumer interests, which is why the answer specifically points to sections 4 and 5.