TILA/RESPA Integrated Disclosures (TRID) - Reg Z Flashcards
What does TRID stand for?
TILA/RESPA Integrated Disclosures
What Regulation is TRID?
Reg Z
What are the 3/7/3 Timelines?
3: initial disclosures must be sent at or within three business days of application
7: fastest consummation may occur is on the seventh business day after receipt of a LE
3: waiting period of three business days from receipt of CD to closing
The 3/7/3 Rule RESETS if:
- APR increased by 1.25% or more
- prepayment penalty added
- program changes
Mailbox:
A document is considered received on the 3rd business day after it is mailed
Rescission:
3 day waiting period from closing to funding on a refinance of primary residence
TRID Disclosures “MUSTS”
- Loan Estimates
- Your Home Loan Toolkit (Special Info Booklet - SIB)
- List of HUD Counselors (min of 10 agencies)
TRID Disclosures “MAY”
- CHARM Booklet (ARM)
- When your home is on the line (LOC)
- Notice of Right to Receive Copy of Appraisals
- Affiliated Business Arrangement (AfBA)
- Notice of Right to Rescind (2 copies per borrower)
According to TRID, how many descriptors of loan can be on the LE and CD?
2
According to TRID, what is the only field an MLO can use a description for?
subject property
According to TRID, subject property must AT LEAST include what?
zip code
According to TRID, you must know details exactly or _____ ______.
leave blank
According to TRID, you are never allowed to use what on LE/CD?
“N/A”
According to TRID, on the LE/CD you must always include an estimate of what?
escrow amounts (don’t put $0)
On the LE/CD, how long must charges be good for?
10 days
On LE/CD rate can change at any time if not locked (True or False)?
True
Fonts for LE/CE =
main text: 12
subtext: 8
Use of LE/CD is mandatory and forms may not be altered. (True or False)
True
The LE is __________.
summarized
The CD is ________.
itemized
TRID Tolerances:
- Box A (origination) and Box B (cannot shop) = 0%
- Box C (can shop) = 10%
- Other = unlimited tolerance
- APR =
~irregular transaction = .25%
~regular transaction = .125%
LE/CD disclosure the APR and TIP over how many years?
5 years
What does TIP stand for?
Total Interest Percentage
How early may a borrower review FINAL CD (or HUD 1 Settlement) prior to closing?
24 hours
