The 2010 Dodd-Frank Act created the Consumer Financial Protection Bureau and directed the CFPB to publish rules and forms that combined disclosures consumers receive in connection with mortgage loans under the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA). The CFPB has now finalized the TILA-RESPA Integrated Disclosure, or TRID, forms, applicable to transactions for which the creditor or mortgage broker receives an application on or after October 3rd. Some things to note:
· You and your clients will see a new disclosure and closing statement, and the period between contract execution and closing may take slightly longer.
· Lenders may refer to the closing form as a Closing Disclosure Form (CDF).
· The TRID rules don’t apply to home equity lines of credit, reverse mortgages, or mortgages secured by a mobile home or dwelling not attached to real property, loans made by a lender who makes 5 or fewer loans each year, or certain no-interest second mortgage loans for specific purposes.
· The Texas Real Estate Commission has modified some of its forms to accommodate TRID. You can review these at the TREC website.