There's a change to the home financing process. It's a directive from the Consumer Financial Protection Bureau, or CFPB. The goal of the CFPB is to keep consumers like you safe. After the housing market meltdown in 2008/2009, the CFPB was created to protect you by making the mortgage process more transparent and easier to understand.
So what does TRID stand for? TRID is the TILA RESPA Integrated Disclosure Rule. Only in the dang mortgage world would they make an acronym from acronyms. TILA is the Truth in Lending Act and RESPA is the Real Estate Settlement Procedures Act.
What should you expect with these changes?
First, you will notice clear and accurate disclosures of all fees. No matter where you shop for a mortgage, all lenders are required to disclose fees on the loan estimate once they have received the borrowers application.
In addition to clear and accurate disclosures, lenders are now required to provide a closing disclosure at least 3 days prior to close. You may have heard of a HUD-1 Settlement Statement which has been used to document closing costs for many years. The HUD-1 is now going away and is being replaced by the closing disclosure, also known as the CD.
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