TRID (TILA-RESPA Integrated Disclosure)

What TRID Replaced

Before TRID, borrowers received four separate disclosure forms from two different federal laws: the Good Faith Estimate and HUD-1 Settlement Statement (from RESPA) and the initial and final Truth in Lending disclosures (from TILA). These overlapping documents created confusion because they presented overlapping information in different formats. The TRID rule, also known as the Know Before You Owe rule, merged them into two clearer documents:

• Loan Estimate (LE): Replaces the Good Faith Estimate and initial TIL disclosure. Must be delivered within of receiving a loan application.
• Closing Disclosure (CD): Replaces the HUD-1 and final TIL disclosure. Must be delivered at least before closing.

Key Timing Requirements

TRID imposes strict timing rules that directly affect the mortgage closing timeline. If certain terms on the Closing Disclosure change beyond permitted tolerances after delivery, a revised CD must be issued and a new 3-business-day waiting period begins. Changes that trigger a new waiting period include an APR increase exceeding for fixed-rate loans, the addition of a prepayment penalty, or a change in the loan product.

Practical Impact on Borrowers

TRID ensures borrowers have adequate time to review loan costs and compare them against the original Loan Estimate before committing at closing. The standardized format makes it easier to compare offers across lenders. Borrowers should review the Closing Disclosure carefully and compare it line-by-line with the Loan Estimate to identify any changes in fees, interest rate, or loan terms.