What is TRID?TILA-RESPA Integrated Disclosures. The “Know Before You Owe” rule as it is called, is considered the single most significant regulatory event in the residential mortgage business in thirty years. It was scheduled to go into effect August 1st but has been delayed until October 1st. Over the last 5 or 6 years the mortgage industry has been riddled with new rules and regulations. Some have been helpful and some have just delayed the process and helped no one. Although most people in the mortgage industry are plain tired of all the changes I have to say that I applaud this new regulation (at least that’s what I say now). I’ve been in the mortgage industry 28 years and have closed thousands and thousands of loans. The one thing that has always irritated me is how last minute everything is. Regardless of whether it’s the lender’s fault, the attorney’s fault, the realtor’s fault, or the borrower’s fault, the last minute closings happen way to often. Under TRID, hopefully this will come to an end. The main point of TRID is that the borrower should have a closing statement in their hands 3 days before closing. They should know the loan amount, payment, and cash-to-close 3 days before closing. No last minute surprises. When you are possibly making the single biggest purchase of your life don’t you think it’s fair to know the details at least 3 days before you pull the trigger? I think so.
There will surely be a learning curve for TRID. Anytime new regulations are implemented it takes time to get all the bugs out. But this one is worth it. The borrowers should be fully aware of what the terms and conditions of the loan will be. They should not be forced into making a decision they are uncomfortable with just because the moving truck is waiting outside the house. The Consumer Financial Protection Bureau (CFPB) has made the right move with TRID.