TILA-RESPA Integrated Disclosures (TRID)
Big Changes Coming on October 3, 2015
Background & Reasons for Change
- Currently, Four Disclosure Forms -For more than 30 years, Federal law has required lenders to provide two different disclosure forms (GFE & TIL) to consumers when they apply for a mortgage and two different forms (TIL & HUD-1) at or before closing.
- In the Past, Two Agencies -Two different Federal agencies (HUD & FRB) developed the disclosure forms separately under two Federal statutes: The Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act of 1974 (RESPA).
- The Problem: Inconsistency & Confusion-In general, the information on the current disclosures overlaps and the language is inconsistent. As a result, consumers often find the current disclosures confusing and lenders find them difficult to explain to consumers.
- The Solution: One Agency, Two Integrated Disclosures–The Dodd-Frank Act created the CFPB (Consumer Financial Protection Bureau)and directed the new agency to integrate the mortgage disclosures. After extensive consumer and industry research, the CFPB issued the final regulation on November 20, 2013 with an effective date of August 1, 2015.The New Disclosures –The Loan Estimate & Closing Disclosure
The initial disclosure will be known as the Loan Estimate, replacing the GFE and Early TIL. The disclosure for settlement will be known as the Closing Disclosure, replacing the Final TIL and HUD-1.
For additional information and form samples, visit cfpb (Consumer Financial Protection Bureau) at www.consumerfinance.gov