TILA RESPA Integrated Disclosure (TRID) Study Guide and Sample Questions: A Comprehensive Overview

TILA-RESPA INTEGRATED DISCLOSURE (“TRID”): TILA-RESPA INTEGRATED DISCLOSURE (“TRID”) -STUDY GUIDE, AND SAMPLE QUESTIONS

by Anderson A. Jimmerson

4 out of 5

Language	:	English
File size	:	918 KB
Text-to-Speech	:	Enabled
Enhanced typesetting	:	Enabled
Word Wise	:	Enabled
Print length	:	16 pages
Lending	:	Enabled
Screen Reader	:	Supported

FREE

The TILA RESPA Integrated Disclosure (TRID) rule, implemented by the Consumer Financial Protection Bureau (CFPB),revolutionized the way mortgage loan closings are conducted in the United States. TRID aims to improve consumer understanding and transparency by consolidating two separate disclosures, the Truth-in-Lending (TIL) and Real Estate Settlement Procedures Act (RESPA) disclosures, into a single, integrated document.

Understanding TRID is crucial for mortgage professionals and consumers alike. This comprehensive study guide will delve into the key requirements of TRID, provide practical tips, and present a series of sample questions to help you prepare for the TRID certification.

Key Requirements of TRID

• Timing of Disclosure: Lenders are required to provide the Loan Estimate (LE) within three business days of receiving a loan application and the Closing Disclosure (CD) at least three business days before the scheduled closing date.
• Format and Content: Both the LE and CD must be presented in a standardized format, using specific terminology and calculations. They provide detailed information about the loan terms, closing costs, and other expenses.
• Consumer Understanding: TRID emphasizes consumer understanding by requiring lenders to use clear and concise language, provide personalized explanations, and offer opportunities for consumers to ask questions.
• Tolerance Levels: Lenders must adhere to specific tolerance levels for certain closing costs. If costs exceed these tolerances, the lender may be subject to penalties.
• Electronic Delivery: Lenders are permitted to deliver the LE and CD electronically, provided the consumer consents and has access to the necessary technology.

Practical Tips for TRID Compliance

1. Gather Accurate Information: Collect complete and accurate borrower information during the loan application process to ensure the LE and CD are accurate.
2. Use Standardized Templates: Utilize the CFPB-approved LE and CD templates to simplify the disclosure process and minimize errors.
3. Provide Clear Explanations: Supplement the disclosures with personalized explanations to help consumers understand the complex information.
4. Monitor Closing Costs: Track closing costs closely to avoid exceeding tolerance levels and potential penalties.
5. Stay Up-to-Date: Regularly review CFPB guidelines and industry updates to stay informed about changes to TRID requirements.

Sample TRID Questions

Mastering the TILA RESPA Integrated Disclosure (TRID) rule is essential for mortgage professionals to ensure compliance and protect consumers. By understanding the key requirements, implementing practical tips, and practicing with sample questions, you can prepare for TRID certification and provide your clients with a transparent and empowering loan closing experience.

Remember to stay updated with industry guidelines and continue to enhance your knowledge to stay compliant and deliver exceptional service in the evolving mortgage industry.

TILA-RESPA INTEGRATED DISCLOSURE (“TRID”): TILA-RESPA INTEGRATED DISCLOSURE (“TRID”) -STUDY GUIDE, AND SAMPLE QUESTIONS

by Anderson A. Jimmerson

4 out of 5

Language	:	English
File size	:	918 KB
Text-to-Speech	:	Enabled
Enhanced typesetting	:	Enabled
Word Wise	:	Enabled
Print length	:	16 pages
Lending	:	Enabled
Screen Reader	:	Supported

FREE