So what is TRID?
It is ‘TILA/RESPA Integrated Disclosure’ rule, also known as TRID. Since this rule is designed to help borrowers understand the terms of their home financing transaction, there is a trend to start referring to this rule as the Know Before You Owe rule instead of TRID. The Know Before You Owe rule took effect October 3, 2015. Follow link below to see and print out forms,
What it means for the borrowers?
When the borrower starts first shopping various lenders for a loan they receive a ‘loan estimate’ (they can receive many of these to compare lenders). Once they make a decision and choose the lender they then they will receive a ‘closing disclousure’ 3 days in advance for review. It all the terms are agreeable and no changes need to be made, after the 3rd day docs can be drawn.
A new Closing disclosure has taken the place of the TIL (Truth and Lending) and The HUD (Settlement statement). This new disclosure has everything regarding the borrowers loan. Please refer to attached sample. The borrower is supposed to receive the Closing Disclourse (or Cd as we have named it) within 3 days of the docs being drawn. This is mandatory. There is now no surprises at the signing table. Keep in mind some title and escrow companies still use a HUD-1 in conjunction with the new CD. I have noticed this with purchases.
What this means for the notary signing agent? For us this means less delays in getting the documents and less questions at the table. The borrower is now already aware of the numbers and terms. The signings go much faster.
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Ken’s tips for the closing disclosure
The closing disclosure itemized