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It’s the day before ‘the day the world changed’ — are you ready for TRID?

CFPB’s TILA-RESPA Integrated Disclosures rule takes effect Oct. 3, ushering in sweeping changes to mortgage closing process
  • The Consumer Financial Protection Bureau’s (CFPB) TILA-RESPA Integrated Disclosure rule formally takes effect on Saturday, Oct. 3.
  • Any loan applications taken Oct. 3 and beyond must follow the 1,800 pages of regulations that the CFPB issued in November 2013.
  • Lenders must monitor all parties to the transaction to verify that everyone is compliant, and if they’re not, the lender is on the hook to the bureau.

A day nearly two years in the making is finally here: The Consumer Financial Protection Bureau’s (CFPB) TILA-RESPA Integrated Disclosure rule -- which has come to be known as “TRID,” but the bureau prefers that people begin to think of it as the “Know Before You Owe” rule -- formally takes effect on Saturday, Oct. 3. Any loan applications taken Oct. 3 and beyond must follow the 1,800 pages of regulations that the CFPB issued in November 2013. Say goodbye to the HUD-1 settlement statement, Good Faith Estimate and Truth in Lending Act disclosure, and hello to two new forms, each of which must be delivered to the borrower under specific, prescribed timelines: A Loan Estimate form that must be delivered or placed in the mail no later than the third business day after receiving the consumer’s application A Closing Disclosure form that must be provided to the consumer at least three business days prior to consummation But TRID is much more than a simple change in fo...