What does TRID stand for?

TRID stands for TILA-RESPA Integrated Disclosure. This regulation was established to streamline the mortgage process and provide consumers with clearer information about the costs associated with their loans. TILA refers to the Truth in Lending Act, which mandates clear disclosure of credit terms to consumers. RESPA stands for the Real Estate Settlement Procedures Act, which aims to ensure that consumers receive disclosures about the settlement process, promoting transparency in the real estate transaction.

The TRID rule requires lenders to provide two key documents: the Loan Estimate and the Closing Disclosure. The Loan Estimate helps borrowers understand loan terms and estimated costs, while the Closing Disclosure provides final details about the mortgage loan, ensuring that borrowers are well-informed before completing their transactions. This integrated approach is designed to promote clarity and consumer understanding, ultimately aiming to protect consumers in their mortgage dealings.