TRID: What Is It?
TRID is a new mortgage disclosure rule, created in the aftermath of the mortgage crisis several years ago. It just came into effect this past October. Also referred to as the “Know Before You Owe” rule, it alters loan forms and practices. TRID, a tricky acronym, spells out the four components of the loan regulation:
- TILA (Truth in Lending Act): This applies to most types of credit, including mortgages. The law regulates what lenders can advertise about the benefits of their loans.
- RESPA (Real Estate Settlement Procedures Act): Guarantees that consumers are offered more helpful information concerning the costs of mortgages and protected from high settlement charges associated with abusive practices.
- Integrated: Neither of the above laws are new, but new regulations will change how forms and regulations are integrated.
- Disclosure: The new regulations provides better loan disclosure.
What Changes Under TRID?
How does does new regulation affect people pursuing a mortgage? Basically, the new regulations streamline the old mortgage forms, which could be confusing and laborious. TRID sets out to transform the mortgage process from application to closing. Lenders must now follow stricter disclosure policies including fees and timing requirements.
About Matt Page Real Estate
As an experienced and respected real estate institution, The Matt Page Group helps people buy or sell homes. We strive to create a more open and comprehensible real estate process and we welcome any new regulations that help this happen. If you have any questions regarding TRID, mortgages, or the path toward homeownership, feel free to call our Salt Lake City office. (801) 365-3354. Or browse through our latest listings.