TRID Flashcards
The initial disclosure given at the start of a loan transaction. It is intended to help consumers compare costs and shop competitively for mortgages
Loan Estimate
Given prior to closing, helping borrowers understand the final costs of their transaction and the loan over time.
Closing Disclosure
Loan Estimate and Closing Disclosure replaced which historical disclosures that are still used in a limited number of transactions
Good Faith Estimate (GFE)
TIL Disclosures
HUD-1 Settlement Statement
TRID does not apply to the following transactions, which still leverage GFE, TIL, and HUD disclosures
HELOCs
Reverse Mortgages
Dwellings not attached to land (mobile homes)
Loan Estimate retention requirement
3 years
Closing Disclosure retention requirement
5 years
Loan Estimate timing requirement
No more than 3 days after application
No later than 7 days before consummation (enforces a mandatory “waiting” period)
Threshold for differences between Loan Estimate / Closing Disclosure: Aggregate closing costs
Closing Disclosure cannot exceed Loan Estimate by more than 10%
True or False:
Zero tolerance for differences in fees if paid to the creditor or an affiliate
True
Zero tolerance for fee differences apply to fees paid to the following parties:
- The creditor
- Mortgage brokers
- Affiliates of the creditor or mortgage broker
- Unaffiliated third parties if the creditor did not allow the consumer to shop for settlement services
- Transfer taxes
True or False:
Lenders must provide listing of available service providers for services the borrower is permitted to shop for
True - due with Loan Estimate
Required waiting period between receipt of Closing Disclosure and consummation
3 business days, unless. borrower authorizes receipt beforehand
Refund deadline for amounts paid at closing in excess of the 10% threshold
60 days
