As of October 3, 2015, the TILA-RESPA Integrated Disclosure rule (TRID) has taken effect across the country. As such, there are many new regulatory changes that will affect the home loan transaction through closing. These new lending regulations are designed to streamline the process of getting a loan and make it easier for borrowers to understand.
A Few Changes to Disclosures
With this change, several disclosures have been consolidated under TRID. So instead of four disclosure forms, there are now two. For the beginning of the process, your lender will provide you with a Loan Estimate within 3 days of submitting your financial information for the purpose of obtaining a mortgage. The Loan Estimate combines and replaces the Good Faith Estimate (GFE) and the initial Truth in Lending (TIL) statements. It will make loan comparisons between lenders easier.
For the end of the process, the HUD-1 Settlement Statement and the final TIL Statement have been combined to form the Closing Disclosure. You must receive your Closing Disclosure at least 3 days prior to closing. Any changed made to the Closing Disclosure after you receive it could cause a delay in your closing. These changes may include:
- A change to the annual percentage rate
- A change to your loan product
- The addition of a pre-payment penalty
Top TRID Tips for Borrowers
To assist you in preparing for your loan closing, please keep in mind the following tips that will make the process much easier for you and your lender:
- Provide your lender with your intent to proceed to move forward in the loan process.
- Provide your lender with all documentation they require as soon as possible.
- Meet all necessary deadline dates in the sales contract
- Provide your lender and title company with any addendums, invoices or credits to be collected at closing.
- Provide your lender with your homeowner’s insurance information as soon as possible.
- Inform the necessary parties of any changes to your circumstances that may occur during the transaction.
- Finalize loose ends on the sales contract so the lender and title company have all the information they need to prepare your Closing Disclosure at least one week prior to closing.