The TILA-RESPA Integrated Disclosure (TRID) rule consolidates four mortgage forms into two; the RESPA Good Faith Estimate and Initial Truth-In Lending disclosure have been combined to create the Loan Estimate form, and the RESPA HUD-1 and the Final Truth-In Lending Disclosure now comprise the Closing Disclosure.
TRID was created to provide consumers increased protection, and to allow them more control and a clearer understanding of their home buying process. Under the new regulations, Loan Estimates must be hand-delivered or placed in the mail within three business days after an application is received. Furthermore, the homebuyer must receive the Closing Disclosure at least three business days before finalizing their mortgage.
Compliance with TRID has been a difficult undertaking for the mortgage industry, and various attempts have been made to ease professionals into the new process. Earlier this year, Congressman Steve Pearce (R-NM) and Congressman Brad Sherman (D-CA) introduced H.R. 2213, intended to provide temporary legal protections for lenders attempting to meet the terms of TRID regulations. This bill was applauded by the mortgage industry and shortly after, the CFPB announced the establishment of a grace period for those attempting to comply in good faith with TRID.
On June 17, 2015, the CFPB further acknowledged the difficulties of TRID compliance by postponing the August 1 implementation date to October 1, and just a week later this date was once again delayed to October 3.
Now, as the mortgage industry is less than 24 hours from TRID implementation, the impact of the new regulations is imminent. Will lenders adopt the rule in stride, or will the regulations give rise to more problems than they solve? One certainty is that TRID will provide necessary help and protection, and a better home buying experience to consumers. This is what is important.