Monday, October 26, 2015

How TRID Affects the Lending World



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Today, we’ll highlight how TRID affects the lending world. TRID stands for TILA-RESPA Integrated Disclosure. This changes the entire lending world as we know it, and we’ve been getting ready for it for the past couple of months.

TRID helps the consumer understand the loan process. It removes the original HUD-1 closing statement. It also gets rid of the TIL disclosure and the Good Faith Estimate. Now, the process will combine a closing disclosure statement with a loan estimate.

Everything will line up at the time of the closing. Previously, a closing statement would not make the TIL for the client. All the numbers were different. Today, things will be more simple. Numbers will appear the same and it will all be much clearer, especially for the lender.


The HUD-1 is gone completely. As of October 5th, the new process started. This is a national mandate, too.

The only thing that impacts a Realtor is that there will be no more rushed closings. There might be thirty-day closings in the future, but there will be no next-day closings. There is a three-day waiting period for the consumer to review the document. This is a good thing because it makes the system run smoother, as the consumer has plenty of time to review documents.

Right now, we’re expecting 45-day closings. We want to give mortgage companies, title companies, and attorneys enough time within this system. It might take a while to jump back into the thirty-day range.

Thanks for joining our video blog today! Reach out if you have any questions regarding this topic.

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