TILA-RESPA Integrated Disclosure Rule (TRID)

The TRID rule combined old disclosure forms into streamlined documents. The first is the "Loan Estimate" (LE). Lenders must provide this form to borrowers within three business days of receiving their loan application. It details the estimated interest rate, monthly payment, and total closing costs.The second major form is the "Closing Disclosure" (CD). The lender must provide this to the borrower at least three business days before the actual closing (signing). This waiting period allows the buyer to compare the final numbers with the original Loan Estimate and ask questions without feeling pressured. The CD lists the final terms of the loan, the exact monthly payment, and a detailed breakdown of all closing costs (who pays what).Lenders are required to give borrowers a copy of the "Your Home Loan Toolkit" booklet. This guide helps explain the nature of closing costs and the mortgage process.TRID applies to most closed-end residential mortgages. However, it does not apply to Home Equity Lines of Credit (HELOCs), reverse mortgages, or mobile homes not attached to land. Key points to remember: TILA handles the cost of credit (APR), RESPA handles the closing process (kickbacks), and TRID integrates the paperwork for both into the Loan Estimate and Closing Disclosure forms.