The Ultimate Guide: 6 Pieces of Information for TRID Compliance

The Ultimate Guide: 6 Pieces of Information for TRID Compliance

The TRID (TILA-RESPA Integrated Disclosure) rule came into existence in October 2015 to simplify mortgage disclosures and ensure that buyers can comprehend the terms of their loans better. Companies must conform to the TRID regulation when selling credits secured by residential real estate. Otherwise, they risk penalties and lawsuits.

Here are six essential pieces of TRID information for achieving compliance:

1. Uniform Residential Loan Application (URLA): TRID compliance starts with the URLA application, which covers all the essential information requested by the borrower. Lenders can utilize this application to comply with the TRID requirements’ timing and content.

2. Loan Estimate (LE): Companies should provide potential customers with an LE when they apply for a loan. This document offers an overview of the loan terms and expected expenses. Changes must be described by a revised version of the LE.

3. Closing Disclosure (CD): The CD must detail the closing costs of a transaction. A preliminary version of the CD should be available to the customer no later than three days before the loan is concluded. This time frame ensures that the customer has ample time to examine and raise concerns about the numbers.

4. Delivery: Under TRID, companies are bound legally to deliver the LE and CD to the customer in a timely fashion. The maximum delivery time for an LE is no later than three days after the request. For finalizing the deal, companies must provide the CD three days before the close of the financial transaction.

5. Tolerance levels: TRID mandates three types of tolerance groups of fees: zero-percent, 10 percent tolerance, and no tolerance. The zero percent tolerance category includes expenses associated with fees that cannot rise, such as those related to the lender or credit search. The 10 percent tolerance comprises expenses that borrowers have liability for under specific circumstances. Finally, no tolerance expenses include expenses that companies have the right to charge customers.

6. Technology Integration: The majority of mortgage and loan handling procedures can be sped up using technology such as mobile applications. Lenders can use technology to automate TRID processes, streamline document management and delivery and quicken the time it takes to issue LEs, CDs, and other essential documents.

In summary, TRID compliance is crucial for businesses that deal with mortgages and credits secured by residential real estate. Following these six essential pieces of information can help companies make sure they are following all the relevant rules.

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