TILA-RESPA

Question 1

TILA-RESPA Integrated Disclosure Rule

Answer 1

Regulation: N/A
Acronym: TRID
Year created: 2015
Main purpose: Simplify the Disclosure Process.
Disclosure/Notice Required: Loan Estimates, Closing Disclosure.
Important Terms Related to this Law: Changed Circumstances, Tolerance, Business Day, Consummation, Application.
Entity Responsible for Enforcement: CFPB.
Other Laws that have influenced it: RESPA, TILA.

Question 2

The TILA-RESPA Integrated Disclosure Rule or TRID was created in 2015 to simplify and clarify what?

Answer 2

The disclosure process.

TRID requires two disclosure, The Loan Estimate and The Closing Disclosure. The Loan Estimate replaces two disclosures that were required by RESPA and TILA, respectively, the Good Faith Estimate and the Initial Truth-in-Lending Disclosure. The Closing Disclosure also replaces disclosures required by RESPA and TILA, the HUD-1 Settlement Statement and the Final Truth-in-Lending Disclosure. The new disclosures were simplified in their format and created to help clarify complicated mortgage terms for consumers.

Question 3

TRID does not apply to _______________________. Those transactions must continue to use Good Faith Estimates, Truth-in-Lending Disclosures and the HUD-1 Settlement Statement.

Answer 3

Reverse Mortgage & HELOCs

Question 4

What is an application?

Answer 4

An application means the submission of a consumer’s financial information to obtain an extension of credit.

Question 5

An application consists of the submission of the following six pieces of information:

Answer 5

1. The property addresses.
2. An estimate of the value of the property.
3. The consumer’s name.
4. Credit report/The consumer’s social security number.
5. The consumer’s income.
6. The mortgage loan amount sought.

Question 6

True or False: If a borrower withdraws their application before the three business days pass, the LE does not need to be proved.

Answer 6

True