What does the TILA RESPA Integrated Disclosure Rule (TRID) aim to do?

The TILA RESPA Integrated Disclosure Rule (TRID) primarily aims to combine and clarify financing disclosures related to residential mortgage loans. By integrating and simplifying the information that lenders provide to consumers, TRID ensures that borrowers receive clearer and more understandable disclosures about their loan terms and costs.

This rule combines the Good Faith Estimate (GFE) and the Truth In Lending (TIL) disclosures into a single document known as the Loan Estimate, which must be provided to borrowers within three business days of applying for a mortgage. TRID also requires that the Closing Disclosure be provided to buyers at least three days before closing. This focus on clarity and transparency helps consumers make better-informed decisions about their financing options, reducing confusion around financial obligations in the mortgage process.

The other options, while important components of the housing and mortgage process, do not represent the primary aim of TRID. For instance, enhancing title insurance clarity and standardizing lease agreements are not specific goals of this rule. Similarly, while reducing loan processing times may be a beneficial outcome of improved processes and efficiencies, it is not the central focus of TRID. The essence of TRID lies in streamlining and clarifying the disclosures related to financing to better serve the interests of consumers during the mortgage lending process