TRID brings two new documents to the mortgage process that help consumers fully understand their term, rate and mortgage payment from the beginning to the end of the loan application.
These documents are the result of a new regulation from the Consumer Financial Protection Bureau (CFPB) called TRID: TILA (Truth In Lending Act) – RESPA (Real Estate Settlement Procedures Act) Integrated Disclosures.
This regulation pares four documents in the loan application process down to two:
- Loan Estimate (LE): Our members receive this document when they apply for a mortgage loan. It contains an estimate of their term, rate, mortgage payment and responsibilities. It replaces the Good Faith Estimate (GFE) and Truth-in-Lending statement (TIL).
- Closing Disclosure (CD): The CD looks almost identical to the LE, creating consistency throughout the mortgage process. Our members review the CD three days before closing to ensure they “know before they owe.” The CD replaces the HUD-1 and TIL.
TRID went into effect in early October, so we’re already seeing the benefits of this new aspect of the mortgage process. And because we’re a local credit union—using local underwriting, processing and closing—we’re able to meet all the time requirements for purchases, closings and refinances, meaning we haven’t had to move any closings because of the regulations.
Elevations has a strong focus on member education and empowerment, and we believe these clearer, more consistent documents will help you fully understand the mortgage loan process from start to finish.
Watch the video below to hear more about TRID, or visit the CFPB website to learn more and view sample LEs and CDs.