Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

TRID: New Mortgage Disclosure Rules Take Effect

Author: Scarinci Hollenbeck, LLC

Date: October 13, 2015

Key Contacts

Back

The new Truth in Lending Act-Real Estate Settlement Procedures Act Integrated Disclosure (TRID) rule went into effect on October 3, 2015.

If your business is not fully prepared to comply with the new disclosure requirements, time is of the essence.

TRID

TILA-REPSA Rule Compliance & TRID

Under the TRID Rule, mortgage lenders must use new forms that combine the mortgage disclosures required under the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act of 1974 (RESPA). In contrast to prior template forms, the new documents require greater customization and detailed information regarding the specific loan transaction.

The new integrated disclosures under the TRID rule apply to most closed-end consumer mortgages. The rule does not apply to home equity lines of credit (HELOCs), reverse mortgages, or mortgages secured by a mobile home or by a dwelling that is not attached to real property.

The Good Faith Estimate (GFE) and the initial Truth-in-Lending disclosure are combined into a new form, known as the Loan Estimate. These disclosures are intended to help consumers in understanding the key features, costs, and risks of the mortgage loan and must be provided to consumers no later than the third business day after they submit a loan application

The HUD-1 and final Truth-in-Lending disclosure have been combined into another new form, the Closing Disclosure. It designed to provide disclosures that will be helpful to consumers in understanding all of the costs of the transaction and comparing loans from different lenders. The Closing Disclosure must be provided to consumers at least three business days before consummation of the loan.

Other stipulations of TRID Rule

The TRID Rule also contains new record keeping obligations. In general, lenders must retain evidence of compliance for three years after the later of consummation or the date a disclosure is required. The final Closing Disclosure, however, must be retained for five years after loan consummation by the creditor. In addition, although the disclosures may delivered by other entities, such as mortgage brokers, lenders retains liability for ensuring that the documents are provided in accordance with the rule.

The sweeping changes mandated by the TRID Rule represent one of the most significant regulatory overhauls of the mortgage industry in decades. The new documents are very different from what banks are currently using. To implement the changes, most lenders must not only revise their forms, but also significantly amend their business processes, technology requirements, lending policies and procedures, contracts with service providers, and employee training. Accordingly, compliance not only requires careful planning, but also significant resources.

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
Corporate Transactions: Best Practices for Successful Deals post image

Corporate Transactions: Best Practices for Successful Deals

Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]

Author: Dan Brecher

Link to post with title - "Corporate Transactions: Best Practices for Successful Deals"
How to Conduct a Fair and Legal Employee Termination in 2025 post image

How to Conduct a Fair and Legal Employee Termination in 2025

Ongoing economic uncertainty is forcing many companies to make tough decisions, which includes lowering staff levels. The legal landscape on both the state and federal level also continues to evolve, especially with significant changes to the priorities of the Equal Employment Opportunity Commission (“EEOC”) under the Trump Administration. Terminating an employee is one of the […]

Author: Angela A. Turiano

Link to post with title - "How to Conduct a Fair and Legal Employee Termination in 2025"
Admin Dissolution for Annual Report: What You Need to Know post image

Admin Dissolution for Annual Report: What You Need to Know

While filing annual reports may seem like a nuisance, failing to do so can have significant ramifications. These include fines, reputational harm, and interruption of your business operations. In basic terms, “admin dissolution for annual report” means that a company is dissolved by the government. This happens because it failed to submit its annual report […]

Author: Dan Brecher

Link to post with title - "Admin Dissolution for Annual Report: What You Need to Know"
What Is Antitrust Litigation Law? post image

What Is Antitrust Litigation Law?

Antitrust laws are designed to ensure that businesses compete fairly. There are three federal antitrust laws that businesses must navigate. These include the Sherman Act, the Federal Trade Commission Act, and the Clayton Act. States also have their own antitrust regimes. These may vary from federal regulations. Understanding antitrust litigation helps businesses navigate these complex […]

Author: Robert E. Levy

Link to post with title - "What Is Antitrust Litigation Law?"
Dissolving Your Business: Essential Legal Steps to Protect Your Interests post image

Dissolving Your Business: Essential Legal Steps to Protect Your Interests

If you’re considering closing your business, it’s crucial to understand that simply shutting your doors does not end your legal obligations. Unless you formally dissolve your business, it continues to exist in the eyes of the law—leaving you exposed to ongoing liabilities such as taxes, compliance violations, and potential lawsuits. Dissolving a business can seem […]

Author: Christopher D. Warren

Link to post with title - "Dissolving Your Business: Essential Legal Steps to Protect Your Interests"
The Role of Corporate Restructuring in Mergers & Acquisitions post image

The Role of Corporate Restructuring in Mergers & Acquisitions

Contrary to what many people think, corporate restructuring isn’t all doom and gloom. Revamping a company’s organizational structure, corporate hierarchy, or operations procedures can help keep your business competitive. This is particularly true during challenging times. Corporate restructuring plays a critical role in modern business strategy. It helps companies adapt quickly to market changes. Following […]

Author: Dan Brecher

Link to post with title - "The Role of Corporate Restructuring in Mergers & Acquisitions"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!