(TRID) TILA-RESPA Integrated Disclosures Part 1

Question 1

What does TRID stand for?

Answer 1

TILA-RESPA Integrated Disclosures.

Question 2

What is the purpose of TRID?

Answer 2

Designed to help consumers become more informed shoppers.

• Understand their options.
• Choosing the best deal & avoid surprises at closing.

Question 3

For purchase and refinance, the Good Faith Estimate (GFE) was replaced by what new form?

Answer 3

The Loan Estimate (LE).

Question 4

For purchase and refinance, the Uniform Settlement Statement of HUD was replaced by what disclosure?

Answer 4

The Closing Disclosure (CD).

Question 5

For Reverse Mortgage, Construction Mortgage, and Mobile Home Loans, what two disclosures are still used?

Answer 5

The Good Faith Estimate, and the Uniform Settlement Statement (HUD forms).

Question 6

According to the CFPB, when is an application known as complete?

Answer 6

1. ) Name(s) of borrower.
2. ) SSN for each borrower.
3. ) Gross Monthly income of borrower(s).
4. ) Loan amount sought.
5. ) Address of subject property. (To be determined or TBD can be put there if the address is not known.)
6. ) Estimate of property value.

Question 7

Once an application is completed and obtained and the borrower has indicated their intent to proceed, the initial disclosures must be provided—unless (2 answers.):

Answer 7

1. ) The applicant withdraws the application, or

2. ) The lender turns down the loan before the 3 business-day period end.

Question 8

According to TRID, what disclosures must be given at or within 3 business-days of application? Also known as the Initial Disclosures.

Answer 8

1. ) Home Loan Toolkit—Know Before You Owe Booklet (RESPA)
2. ) Loan Estimate (TILA)
3. ) Mortgage Servicing Disclosure Statement (RESPA)
4. ) List of HUD Approved Home Counselors (RESPA)

Question 9

According to TRID, what disclosures must be given Before Settlement, or before Doc Signing.

Answer 9

1. ) Affiliated Business Arrangement (AfBA) Disclosure (RESPA)
2. ) Closing Disclosure: 3 days prior to consummation (TILA)

Question 10

According to TRID, what disclosures must be given At Settlement; or during Doc Signing?

Answer 10

1. ) Finalized Closing Disclosure (TILA)
2. ) Initial Escrow Statement (within 45 days of closing) (RESPA)
3. ) Annual Escrow Statement (RESPA Sect. 10) (RESPA); also known as the:
   
   • Goodbye Letter (must be given 15 days prior to transfer—no penalty for 1st 60 days)

Question 11

Which law deals with the timing of providing disclosures? TILA or RESPA

Answer 11

RESPA