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MLO training > TRID > Flashcards

TRID Flashcards

1
Q

What does TRID stand for?

A

TILA-RESPA Integrated Disclosure Rule

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2
Q

What is TRID nicknamed?

A

“Know before you owe”

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3
Q

Purpose of TRID

A

To protect consumers by requiring lenders to disclose certain types of key information

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4
Q

When was TRID enacted?

A

2015

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5
Q

Loans covered under TRID

A
  • mortgages
  • refinancing
  • construction-only
  • closed- and home-equity loans
  • loans secured by >25 acres

Does not cover:
- HELOCs
- Reverse mortgages
- Mortgages for a dwelling that is not attached to real property such as a mobile home

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6
Q

What is an LE?

A

Loan Estimate - tells the borrower important details about the mortgage loan they requested

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7
Q

Required info for loan estimates

A
  1. Name
  2. Income
  3. SSN
  4. Property address
  5. Property’s estimated value
  6. Desired loan amount
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8
Q

Loan consumption

A

The time a consumer becomes contractually obligated

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9
Q

LE special information booklet

A

Must be delivered or put in the mail no later than 3 business days from the date the application is received or prepared

Does not have to be delivered for:
- refinances
- subordinate loans
- reverse mortgages
- a loan whose purpose is not to purchase a 1-4-family residential property

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10
Q

CD

A

Closing Disclosure

A 5-page form that provides final details about the mortgage loan selected, including the projected monthly payments and closing costs

Lender is required to deliver it at least 3 business days before closing

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11
Q

Permissible fees and finance charges on an LE

A

Any charge payable directly or indirectly by the consumer and imposed directly or indirectly by the creditor as an incident to or a condition of the extension of credit.

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12
Q

What did the LE replace?

A

GFE/TIL (Good Faith Estimate and Truth In Lending)

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13
Q

What did the CD replace?

A

Final TIL/HUD-1 (final Truth In Lending and Housing of Urban Development)

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14
Q

“Change of circumstances” under TRID

A
  1. Extraordinary or unexpected events
  2. Inaccurate or change of info after LE is provided
  3. New info
  4. Customer request
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15
Q

MLO actions of TRID is incomplete

A

Have the consumer answer and provide a new LE

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16
Q

Scenario violations of TRID

A

Can only charge for obtaining a credit report

17
Q

LE facts

A
  • LE records must be maintained for 3 years from the last activity on loan
  • replaced TILAs disclosure and RESPAs GFE
  • intro of TIP (Total Paid Interest)
  • all settlement costs on an LE must be valid for 10 business days
18
Q

That is TIP?

A

Total Paid Interest - calculates the total interest paid over the life of the loan stated as a percentage

19
Q

Annual escrow statement

A

Divided into 2 sections - projection (1-year) and history

Must include:
1. The amount of the borrower’s current monthly mortgage payment and the portion going into escrow
2. The amount of the past year’s monthly mortgage payment and the portion that went into the escrow account
3. The total amount paid into the ab Lun during the last year
4. The total amount paid out of the escrow account during the same period for taxes, insurance premiums, and other charges
5. The balance at the end of the e period
6. An explanation of how any surplus is being handled by the servicer (any excess of $50 or more must be refunded within 30 business days)
7. If applicable, the reason(s) why the es to Nate’s low monthly balance was not reached

20
Q

Info that must be provided to consumer upon request

A
  1. all info in consumer’s file
  2. Sources of the info
  3. I.D. of each person that procured a consumer report
  4. The stars, original payees, and amounts of any checks upon which is based any adverse characterization of the consumer
  5. A record of all inquiries received by the agency during the 1-yr period preceding the request that identified the consumer in connection with a credit or insurance transaction that was not initiated by the consumer
  6. If consumer requests credit file, a statement that they may only request their credit score
21
Q

Borrower’s right to recission under TRID

A
  • applies to any credit transactions involving the establishment of a security interest in a principal residence
  • home equity loans
  • home improvement loans
  • refi
  • HELOC
  • 3yr right of rescind for not being advised about right if recission and not given proper disclosures
  • 3 business days
  • return money within 20 calendar days
  • right to rescind until midnight on 3rd business day
  • must be provided 2 copies

MLO training (4 decks)

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