TRID and You
TRID represents a regulatory change that impacted the mortgage industry in 2015. The most significant adjustment was the introduction of 2 new forms, the elimination of 3 long standing forms as well as the introduction of a government mandated timeline that mortgage lenders must adhere to.
The goal of legislators was to provide clarity and congruency to the process for any consumer obtaining a new mortgage. TRID approached this goal by creating new documents, changing the flow of the mortgage process and holding lenders liable to meet these new rules.
What was Added
What was Eliminated
1. Good Faith Estimate
2. Truth in Lending Form
3. Settlement Statement
Purpose of the Loan Estimate & Closing Disclosure
The problem with the old documents (GFE, TIL and Settlement Statement) was that they were dissimilar in format. This led to confusion for consumers when trying to match their initial home loan offer with their final home loan terms.
The Loan Estimate and Closing Disclosure mirror each other in terms of formatting. This makes it simple for consumers from first time homebuyers to seasoned investors to compare their initial loan offer with their final loan terms.
TRID and New Timing Rules
TRID also was centered around mandating specific timeframes that mortgage lenders must follow throughout the loan process. The new mortgage legislation requires that mortgage lenders provide specific documentation throughout the process within well defined periods of time.
Contact The HOUSE Team with you TRID related questions.
Team Phone: 602.435.2149
Team Email: Team@JeremyHouse.com