TRID is the TILA/RESPA Integrated Disclosure Rule that will be taking effect on October 3rd of this year. TILA stands for the Truth in Lending Act (Reg Z) while RESPA stands for Real Estate Settlement Procedures Act (Reg X). As required by the Dodd-Frank Act, the Consumer Financial Protection Bureau (or CFPB) is amending Regulations Z and X to establish new integrated disclosure requirements and required compliance with those new requirements. These changes are referred to as TRID.
To put these changes into the simplest of terms, TRID consolidates several existing disclosures required under TILA and RESPA into two forms- a loan estimate and a closing disclosure. The loan estimate must be mailed no later than the third business day after receiving a customer’s application. The closing disclosure must be given to the customer at least three business days prior to closing.
Understanding the new TRID rule is key to making sure that clients understand the home buying process. Fairway’s excellent compliance team has been working extensively with the sales and operations teams in our company to prepare for these changes in the mortgage and real estate industry. We are preparing well in advance of these changes so that there is no disruption in our service for our clients or real estate partners.
Our approach is simple- take the best possible care of homebuyers, explain every step of the process and close their loans on time and with as little stress as possible. Our promise to our real estate partners is that we will make their jobs easier by going the extra mile to communicate with clients and by having realistic expectations and results that exceed them.