Here are the new terms:
Lender ~ Creditor
Borrower ~ Consumer
Tolerance ~ Variance
Good Faith Estimate ~ Loan Estimate (must be delivered 3rd business day after the receipt of a loan application
HUD-1/Final Truth-in-Lending ~ Closing Disclosure (must be at title company 3 days prior to closing)
Closing ~ Consummation
TRID stands for TILA-RESPA Integrated Disclosure
TILA is short for Truth in Lending Act
RESPA stands for the Real Estate Settlement Procedures Act
TRID refers to the new integrated disclosures for real estate transactions implemented by the Consumer Finance Protection Bureau (CFPB). The CFPB is consolidating existing mortgage disclosures into 2 forms. The CFPB is integrating the Good Faith Estimate (GFE) and Early Truth in Lending (TIL) into one document called the Loan Estimate (LE). When borrowers receive their Loan Estimate, they must communicate their “intent to proceed” before the lender takes any further steps in the loan process. Borrowers may communicate in person, over the phone, via email or by signing a preprinted form.
The HUD-1 and Final Truth-In-Lending will be integrated into one document called the Closing Disclosure (CD) and must be received by the borrower 3 days prior to consummation. Once the receipt of the CD is captured, it will be sent to the settlement agent to schedule closing.
A new CPFB publication “Your Home Loan Toolkit” replaces the current HUD Settlement Cost booklet that borrowers obtaining loans receive today. The updated Toolkit must be delivered within 3 business days of receiving a purchase loan application.
TRID defines a “loan application” as submission of 6 items:
Estimated Property Value
Mortgage amount requested