Update July 11, 20-15: New TRID implementation date is October 3, 2015. The new “Closing Disclosure” forms (3 page Loan Estimate and 5 page Closing Disclosure) will replace the Truth In Lending, Good Faith Estimate, and HUD-1 forms.
Visit TILA-RESPA Integrated Disclosure rule implementation for more detailed explanation and analysis of Closing Disclosure forms.
TRID implementation will be delayed until 10-1-2015…or maybe 10-3-2015…oh well, not on 8-1-2015.
Ok – Basically, the rules aren’t set in concrete just yet and pressure is mounting that the rule can start on time (8-1-2015), but enforcement may be pushed back a short period of time to get lenders acclimated to the process and work into the time tables. In fact, the CFPB (Consumer Finance Protection Bureau) has agreed not to take action over violations of using the new forms and timing…for now (and that means they can change their minds – anytime afterward).
History of Governmental Involvement: Two different Federal agencies developed these forms separately, under two Federal statutes: the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act of 1974 (RESPA). the Consumer Financial Protection Bureau (Bureau ) was tasked by Congress passing the Dodd-Frank Act to integrate the mortgage loan disclosures under TILA and RESPA Sections 4 and 5.
The Bureau has now finalized a rule with new, integrated disclosures – Integrated Mortgage Disclosures Under the Real Estate Settlement Procedures Act (Regulation X) and the Truth In Lending Act (Regulation Z) (78 FR 7973, Dec. 31, 2013) (TILA – RESPA rule )
The Good Faith Estimate (GFE) and (initial) Truth-in-Lending (TIL) disclosure have been combined into one new form – Loan Estimate. Similar to those old forms, the new Loan Estimate form is designed to provide disclosures that will be helpful to consumers in understanding the key features, costs, and risks of the mortgage loan for which they are applying, and must be provided to consumers no later than the third (3rd) business day after they submit a loan application.
The HUD-1 and (final) Truth-in-Lending disclosure (final TIL and, together with the initial TIL, the Truth-in-Lending forms) have been combined into another new form – Closing Disclosure – designed to provide disclosures that will be helpful to consumers to understand all the costs of the transaction. This form must be provided to consumers at least three (3) business days before consummation (i.e., closing) of the loan.
Almost all real estate loans are affected exccept for HELOCs; Reverse mortgages; or Chattel-dwelling loans, such as loans secured by a mobile home or by a dwelling that is not attached to real property (i.e., land).