What does TRID stand for?

TRID stands for TILA-RESPA Integrated Disclosure. This regulation combines two important federal laws: the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA). The primary purpose of TRID is to improve the transparency of the mortgage loan process for consumers, making it clearer and easier to understand the terms of the loan and associated costs.

Under TRID, lenders are required to use a standardized loan estimate form that clearly outlines the key financial details of the mortgage, including the interest rate, monthly payments, and closing costs. Additionally, it mandates the use of a Closing Disclosure form, which provides final details about the mortgage loan, allowing borrowers to easily compare initial loan estimates with final loan terms. Overall, TRID’s framework enhances consumer protection by ensuring that borrowers have accurate and timely information throughout the lending process.