What Types of Loans are Covered (or Not Covered) by TRID?By Deborah Kearns
The new TILA-RESPA Integrated Disclosures (TRID) were created with the intention of simplifying the borrowing process for homebuyers by reducing the amount of paperwork and providing more lead time for consumers to review the terms of their loans prior to closing.
The TILA-RESPA rule applies to most closed-end loans secured by real property., there are some loans that are not covered under the new rule, which means consumers obtaining these loan products will not receive the new Integrated Disclosures. Those products include:
Things get a little trickier when looking at certain types of loans that are currently subject to TILA but not RESPA, but are subject to the TILA-RESPA rule’s integrated disclosure requirements, including:
If your clients need clarification on whether or not they should receive the new TRID forms, they should contact us. As always, we are here to help you and your clients get deals done. Some of the guidance in this article was based on the CFPB Compliance Guide. Deborah Kearns is an award-winning writer based in Denver with more than a decade of experience in corporate communications and news journalism. She has covered the real estate industry for more than seven years. |
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