TRID (TILA-RESPA Integrated Disclosure)

Quick Takeaways

  • The TRID (TILA-RESPA Integrated Disclosure) rule took effect in 2015 for the purpose of harmonizing the Real Estate Settlement Procedures Act (RESPA) and Truth in Lending Act (TILA) disclosures and regulations.
  • The rule has been amended twice since the initial issue, most recently in 2018. The Consumer Financial Protection Bureau (CFPB) continues to assess the rule’s effect on consumers and industry professionals.
  • Both NAR and CFPB have created resources to help professionals understand and comply with TRID rules.

Source: TRID (TILA-RESPA Integrated Disclosure) Issue Summary (National Association of REALTORS®, 2021)

For a number of years, the Consumer Financial Protection Bureau (CFPB) has been working to harmonize the Real Estate Settlement Procedures Act (RESPA) and Truth in Lending Act (TILA) disclosures and regulations. The final Know Before You Owe (KBYO or TRID) rule has helped clarify real estate sales transactions, but initially faced many questions, complications, and costs related to the implementation that began on October 3, 2015.

On July 7, 2017, the CFPB released a final rule amending the TRID mortgage disclosure rule and clarified the ability to share the CD with third parties - a victory for real estate professionals nationwide. The final rule became effective on October 10, 2017, with mandatory compliance required by October 1, 2018. At the same time as that final rule was released, the CFPB issued a proposed rule looking at the outstanding "black hole" issue related to creditors' ability to use a CD to reflect changes in costs imposed on consumers. A final rule on this issue became effective on June 1, 2018, offering additional needed clarity to the lending industry.

The CFPB continues to update its TILA-RESPA Integrated Disclosure Frequently Asked Questions (FAQs), which provides guidance to help ensure compliance with TRID-RESPA Integrate Disclosure Rule and analyze the effectiveness of the rule, to consider changes in the future.

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