How to Get Up to Speed on TRID

What are the Latest Changes for Buying Real Estate?

What do you need to know about TRID? The real estate and mortgage industries are about to go through one of the largest changes they’ve experienced in several decades. The TILA-RESPA Integrated Disclosure (TRID) changes go into effect October 3, 2015. Commonly known as the “Know Before You Owe” rule, this change not only alters the forms, but it also modifies the notification, sign-off, and acceptable timeline process for each.

If you’ve missed the discussion surrounding TRID, here’s the abbreviated version:

Where Did TRID Come From?

TRID is in response to a growing number of people and groups who believed the consumer needed more insight into the real estate buying process and loan numbers. The forms were deemed to be confusing and the estimated numbers of some closing companies didn’t always give a clear reflection of the full amount due at closing.

The Consumer Financial Protection Bureau (CFPB) led this regulatory reform designed to make real estate purchases more understandable and navigable for the average buyer. Initially the reforms were set to go into effect in August but the CFPB pushed the date to October 3, due to an administrative error on its part. This gives mortgage lenders and closers additional time to revisit their planned workflow and processes.

What Changes Under TRID?

There are two main types of changes — changes to forms (and disclosures) and changes to closing timelines. Currently buyers sign two forms that will be dissolved under the new process.

The Truth-in-Lending Disclosure and the HUD-1 Settlement Statement will be replaced by the Loan Estimate Disclosure. This form is designed to help borrowers better understand all of the costs associated with the mortgage over a lifetime. The other form that is being replaced is the Good Faith Estimate. CFPB requires closers to provide a clearer, more accurate look at the closing costs in the new Closing Disclosure.

In addition to the forms changing, the timeline with which the information is presented to the borrower has been reworked. Under TRID, the Loan Estimate Disclosure is due to the borrower three business days after receiving the loan application. The new Closing Disclosure must be received by the borrower at least three business days prior to closing. These new dates on the timeline are substantial changes in themselves, however, if there are changes (including a change in circumstance) or amendments needed on these documents, the subsequent review timeline begins again, so accuracy and complete information are essential to an on-time closing.

Why TRID is Important to the Buyer

The new simplified forms will provide greater insight into what you’re spending over the life of the loan and what your costs are in closing. The consumer benefits from the transparency behind this new process.

This means the lender and closing companies you choose as a buyer are more important than ever. Scheduled closings will not happen under the new policy without accurate and complete information from your team. You need a group of people you can count on or the segmentation of the industry and information will slow things down.

Select a closing company that offers e-signatures and e-paperwork to help ensure everyone stays on schedule and has the most up-to-date information to keep things flowing smoothly. Bay National Title Company has revamped its workflow to ensure they will be able to handle the changes to process required under TRID. They also maintain a paperless closing process and have for years.

Contact BNTC today at to find out more about TRID and closings after October 3.