TILA-RESPA Integrated Disclosure About The TILA-RESPA Integrated Disclosure (TRID)
On November 20, 2013, the U.S. Consumer Financial Protection Bureau (CFPB) issued a final rule to integrate disclosures and regulations required by the Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA). The final rule, the TILA-RESPA Integrated Disclosure (TRID), integrates existing disclosures with new requirements from the Dodd-Frank Act to improve consumer understanding of the mortgage process, aid in comparison shopping, and help to prevent surprises at the closing table. When the rule and changes go into effect, REALTORS® and their clients will encounter new forms and procedures at the closing table. Originally intended to be implemented on August 1, 2015 CFPB delayed the effective date until October 3, 2015. In light of these changes, MAR has prepared a new disclosure form which will be available on all MassForms electronic forms platforms. If you subscribe to Massforms, the form will automatically be added to your library. Also, you can download the form here:
Login to Check out the New MAR Integrated Disclosure Addendum
What REALTORS® Need to Know About TRID
Although the changes directly impact lenders and closing procedures, all REALTORS® need to know how these changes will impact their buyer and seller clients.
Some of the major changes that REALTORS® should know about include the following:
- Good Faith Estimates (GFEs) and Truth in Lending Disclosures will no longer exist. Those forms have been combined into what is called the “Loan Estimate” also known as the “LE”
- This will primarily affect lenders, and will require the lenders to be held accountable to the exact charges listed in this form.
- It also requires that the form be provided to the consumer within three days after receiving the following items: the consumers name; the consumer’s income; the consumer’s Social Security Number; the address of the property, the estimated value of the property; and the loan amount.
To Learn More
- The HUD-1 Settlement Statement will no longer exist. This form is being replaced by the “Closing Disclosure” also known as the “CD”
- This form will contain similar information to the LE, and will allow the consumer to compare the two documents
- This form will have to be delivered to the consumer THREE full days prior to closing. If changes to the document are necessary within this three-day period, closings could be delayed.
The Massachusetts Association of REALTORS® and National Association of REALTORS® want to make the implementation of the new rules as seamless as possible and provide members with as much information as possible. See below for some useful TRID resources for REALTORS® MAR Sidebar: TILA- RESPA Integrated Disclosure
In this edition of the Sidebar, MAR General Counsel & Director of Government Affairs, Mike McDonagh, discusses the TILA-RESPA integrated disclosure.
MAR Webinar Wednesday: Integrated Mortgage Disclosures- Basics for Real Estate Professionals
In this edition of the MAR Webinar Series, Ruth Dillingham, Special Counsel for First American Title Insurance Company New England Region, discusses the how the new TRID rules will change the timing and workflow for residential real estate closings as well as some of the legal issues facing lenders that will impact brokers and agents.
National Association of REALTORS® Field Guide to the TILA-RESPA Integrated Disclosure Rule
This Field Guide features resources to help real estate professionals and consumers understand the upcoming TILA-RESPA changes. CFPB: Know Before You Owe-The Real Estate Professional's Guide
To help ensure smooth and on-time closings, the Consumer Financial Protection Bureau has created this guide to the new mortgage disclosures and process. The Know Before You Owe guide will help real estate professionals and their clients as well as provide useful information about the changes, to go into effect October 3rd, 2015.