First, what is TRID? -- it is an acronym that stands for TILA and RESPA Integrated Disclosure Rule.
(Now don't get too bored)
TILA - stands for Truth-in-lending Act. This regulates all consumer lending not just mortgage- i.e. credit cards and gives the consumer the information of the actual "Cost" for borrowing and fees through the term of the loan- APR. The initial TIL is required on Lafayette and West Lafayette mortgages within 3 days of application.
RESPA- stands for Real Estate Settlement Procedure Act. This law regulates residential real estate transactions and requires the disclosure of the GFE - showing the closing costs and the HUD-1 shows the final closing settlement statement.
TRID replaces both of these forms- TIL and the GFE- now called the Loan Estimate at the application and the HUD-1and final TILA with final figures are now replaced by the Closing disclosure or "CD"
The goal of the government was to make the process simpler for the consumer.
Timing and detail is EVERYTHING with TRID
The CD- must be provided to the consumer three business days before the Lafayette mortgage closing can take place. This means all fees for all transactions numbers must be finalized well before closing-- this is where the competence of the Loan officer you are working with in Lafayette area will shine ,or fizzle.
So next month if your Lafayette Loan officer blames the delay on TRID-- Mr or Ms consumer and Lafayette Realtor-- know that it confirms your loan officer was not on top of their game with your Lafayette/West Lafayette purchase. The finger needs to be now pointed at the loan officer on being on top of your loan and not just handing your Lafayette purchase over to their processor.
TRID will separate your most experienced & proven Loan Officers from your novices-- that may not be a bad thing!
Call me -- Carrie Johnston/ Approved Mortgage-- 765-543-1823--Lafayette/West Lafayette-- I will show you what an Excellent stellar Loan officer is!