Closing Statements - Need To Know

Question 1

What does TRID stand for?

Answer 1

TILA/RESPA Integrated Disclosure

Question 2

What is RESPA?

Answer 2

Real Estate Settlement and Procedure Act

Question 3

What is the document called that will replace the existing HUD-1 settlement statement?

Answer 3

Closing Disclosure

Question 4

What government agency is responsable for the enforcement of RESPA?

Answer 4

The Consumer Financial Protection Bureau - CFPB

Question 5

When does the loan estimate need to be provided to the consumer?

Answer 5

No later than three days after loan application.

Question 6

How many days prior to settlement does a buyer need to be given the Closing Disclosure?

Answer 6

3 business days prior.

Question 7

What is the purpose of the new disclosures?

Answer 7

To provide greater consumer Disclosure on the actual costs and details of their loan.

Question 8

Does RESPA apply to cash transactions?

Answer 8

No

Question 9

What would trigger the need to provide a new Closing Disclosure to the consumer and a new 3-day waiting period?

Answer 9

Changes to the APR, the addition of a Pre-Payment Penalty, or change of Loan Product.