TRID – Terms you should know

This acronym stands for “TILA-RESPA Integrated Disclosures.”

This rule requires two disclosure forms to be combined into a single disclosure (the loan Estimate) when a mortgage application is made – and two additional disclosures to be combined into another form (the Closing Disclosure) when the loan is consummated, or closed.  It applies to most, but not all residential mortgages.  The form that Notary signing agents will encounter is the Closing Disclosure.

All Loan Closing Agents/Notaries will have to become familiar with this HUGE change.

The rule is intended to help borrowers better understand their loan terms better before they reach the closing table.

The rule requires the Closing Disclosure to be received  by the borrower at least three business days before the borrower signs the note.

TRID – TILA-RESPA integrated Disclosure

RESPA – Real Estate Settlement Procedures Act of 1974

HUD-1 Settlement Statement – this itemizes the services provided to the borrower and the fees charged.

TILA – Truth in Lending Act of 1968

TIL Disclosure – It lists costs of a mortgage, including how much the borrower pays over the full term of the loan, the initial mortgage payment and the maximum payment under the loan.

Closing Disclosure – This form combines a clearly presents information that previously was contained in the HUD-1 Settlement Statement and TIL Disclosure.