TRID Changes Mortgage Loan Process and Disclosures for Borrowers

TRID changes mortgage disclosures along with the process of disclosing, documenting, and closing a mortgage loan and everyone needs to know the new rules.  If you are a Real Estate Professional, hopefully by now you are very familiar with the new regulation rules called TRID.  Just in case, below is an easy comparison tool so that you know the changes – Pre-TRID versus Post-TRID.TRID changes Details for the new forms & changes required by TRID which starts 10/3/15

What is difference of the loan application post and pre TRID:

The any other information deemed necessary by the lender piece was removed from the original requirements for disclosures.  After the lender receives the six pieces of information, this triggers the obligation to
provide the Loan Estimate within three business days.

Pre-TRID Loan application:  A completed loan application has seven pieces of information:

  1. Applicant’s name 
  2. Social Security number 
  3. Loan amount sought
  4. Applicant’s income 
  5. Property address
  6. Estimated property value
  7. Any other information deemed necessary by the lender

Post-TRID Loan application:  A completed loan application has six pieces of information:

  1. Applicant’s name
  2. Social Security number 
  3. Estimated property value
  4. Applicant’s income
  5. Property address
  6. Loan amount sought 


What is difference in the Initial Disclosures pre and post TRID:

The Loan Estimate replaces the initial Good Faith Estimate, Servicing Disclosure, and Truth-in-Lending

Pre-TRID Initial Disclosure Forms 
After the consumer submits an application, the lender must provide an initial Good Faith Estimate and Truth-in-Lending disclosure within three business days.
Post-TRID Initial Disclosure Form 
After the consumer submitted an application, the lender must provide an initial Loan
Estimate within three business days.  


 What is difference in cash to close pre and post TRID:

The Loan Estimate clearly states the estimated amount of cash the applicant needs for closing on the first and second page.

Pre-TRID Cash to Close
An estimate for the cash needed at closing is not shown on the Good Faith Estimate.

Post-TRID Cash to Close 
The Loan Estimate includes itemized and categorized settlement costs listed alphabetically, and provides an Estimated Cash to Close on Page 1 and Page 2.  

What is difference in settlement charges pre and post TRID:

The origination and settlement charges are now itemized.

Pre-TRID Settlement Charges
Settlement charges are bundled on the Good Faith Estimate (notably all origination charges and title/closing charges)

Post-TRID Settlement Charges 
Settlement charges are itemized on the Loan Estimate, including all origination charges and title/closing charges. 

What is difference in fees & costs tolerances pre and post TRID:

Lenders are held to a higher standard for quoting fees in good faith for services the applicant cannot shop.

Pre-TRID Tolerances
Fees paid to unaffiliated third parties for which an applicant cannot shop for fall under the 10% aggregate tolerance category (e.g., appraisals)

Post-TRID Tolerances
Fees paid to any unaffiliated third parties for which an applicant cannot shop for fall under the zero tolerance category. Examples include the credit report fee and appraisal fee.  

What is difference in timing of closing pre and post TRID:

All transactions covered by TRID requires at least a three-day pre-closing waiting period—not just transactions where the APR increases outside the APR tolerance

Pre-TRID Timing – Closing
If the APR becomes out of tolerance, a final Truth-in-Lending disclosure must be received at least three business days before closing, and a HUD-1 Settlement Statement can be requested one day before closing.

Post-TRID Timing – Closing
The borrower must receive a Closing Disclosure at least three business days before closing.  

What is difference in preparation of closing pre and post TRID:

Lenders may decide to complete the Closing Disclosure, as they are responsible for it and all the TIL disclosures contained therein.

Pre-TRID HUD-1 Preparation
The settlement agent is responsible for preparing the final HUD-1

Post-TRID Closing Disclosure Preparation
The lender is responsible for ensuring compliance with the Closing Disclosure. Either the lender or settlement agent may complete the Closing Disclosure.  Since the lender is responsible for any errors, no matter who prepares it, most lenders will prepare this form

What is difference in disclosures pre and post TRID:

The Closing Disclosure is an improved accounting tool and provides better information for lenders to calculate the APR and points and fees limits 

Pre-TRID HUD-1 Disclosure
The HUD-1 contains bundled settlement charges and only two columns indicating the party who paid the settlement charge

Post-TRID Closing Disclosure
The Closing Disclosure contains itemized settlement charges and five columns indicating who paid the charge and when paid. 
Hopefully these comparisons will help you in understanding more about the significant changes of TRID.  We are happy to come speak with you in more detail about TRID, its effect on you and your clients, and the rules to follow.

Team Move lends in areas such as Wilmington, Leland, Hampstead, Jacksonville, Camp Lejeune, Whiteville, Shallotte, Southport, Elizabethtown, Lumberton, Fort Bragg, Pope Air Force Base, Fayetteville, Rockingham, Raleigh, Garner, Smithfield, Clayton, Goldsboro, Charlotte, Greensboro, Winston-Salem, Durham, Chapel Hill, Burgaw, Castle Hayne, Holden Beach, Supply, Ocean Isle Beach, Sunset Beach, Hubert, Tabor City, Carolina Beach, Kure Beach, Laurinburg, Topsail Beach, North Topsail Beach, Surf City, Sneads Ferry, Richlands, Wrightsville Beach, New Bern, Oak Island, Saint James, Wallace, Sanford, Pittsboro, Apex, Cary, Raleigh, Holly Springs, Fuquay Varina, Siler City, Southern Pines, Aberdeen, Pinehurst, Whispering Pines, Vass, Spring Lake, Fayetteville, Lillington, Hope Mills, Dunn, Angier, Smithfield, as well as the rest of NC.  North Myrtle Beach, Myrtle Beach, Conway, Loris, Little River, Longs, as well as the rest of South Carolina and Virginia.

Author: Russell Smith

Team Move OVM Financial loan officer success is Russell’s primary focus. He provides the tools and techniques he used as a top producing loan officer. Additionally he offers the Team Move OVM Financial Agent Training Program. Sharing is so important to Russell so he works diligently to be a resource to loan originators and Realtors.