What is TRID?

So you are looking to buy a house and weighing your financing options.  The words you often hear are something like "the rules recently changed and TRID applies now".  TRID stands for TILA-RESPA Integrated Disclosures.  (TILA is the Truth in Lending Act and RESPA is the Real Estate Settlement Procedures Act)

The rules went into effect on October 3, 2015 and apply to most residential mortgage applications submitted on, or after, that date*.  An application is deemed submitted when six items are received by the lender:  name; income; Social Security number; property address; estimated value of the property; and the loan amount being sought. 

A loan estimate, which replaces the former Truth in Lending Disclosure and Good Faith Estimate, must be provided no later than three business days after the application is received and no later than seven business days before consummation of the transaction (closing).

The closing disclosure, which replaces the Truth in Lending Disclosure and HUD-1 Settlement Statement, must be received by the borrower no later than three business days before consummation of the transaction.

The simple, condensed, version is that your closing date is now driven by your availability, your seller's availability, and your lender's compliance with the new regulations.  The realtors and attorneys involved in your transaction should be familiar with the new regulations and should be active in complying with necessary processes to allow your lender as much time as possible to comply with the disclosure requirements.

*The new TRID regulations do not apply to home equity lines of credit (HELOC), reverse mortgages and mortgages secured by a mobile home or a dwelling not attached to the real property.