What is the TRID Disclosure?

TRID stands for TILA-RESPA Integrated Disclosure, a set of federal regulations in the United States that governs the way that mortgage lenders and brokers must provide consumers with disclosures about the terms and costs of their home loans. The regulations are designed to provide consumers with more complete and accurate information about the mortgage loan process, and to help them make informed decisions about borrowing.

How does the TRID Disclosure Work?

TRID works by requiring mortgage lenders and brokers to provide two key disclosures to consumers early in the loan process: the Loan Estimate and the Closing Disclosure.

The Loan Estimate is a form that provides information about the loan terms, interest rate, fees, and other costs associated with the loan. It must be provided to the consumer within three business days of receiving their loan application.

The Closing Disclosure is a form that provides a final accounting of all the costs associated with the loan. It must be provided to the consumer at least three business days before the closing of the loan.

TRID requires the use of these standardized forms and defines specific timeframes for their delivery to help ensure that consumers receive accurate and consistent information about their loans throughout the process. The regulations also prohibit certain fees from being charged to consumers until after the Loan Estimate has been provided, and require that any changes to the loan terms or costs be reflected on the Closing Disclosure.