What is TRID?

LinkedIn
Facebook
Twitter
Email

TRID is an acronym that stands for TILA-RESPA Integrated Disclosures. TRID was developed with the intent to allow potential homebuyers to easily shop for the best deal on a mortgage by requiring lenders to provide standardized and transparent details about loans. It also protects homebuyers from confusing or misleading lending practices. The federal government implemented TRID to replace four previously required documents:

  • HUD-1 statement
  • Truth-in-Lending (TIL) statement
  • Truth-in-Lending disclosure
  • Good Faith Estimate (GFE)

Under TRID, these four documents were simplified into two:

  • Loan Estimate (due at application time)
  • Closing Disclosure (due just before closing)

TRID Document Preparation

Modern banks use third-party document preparation and tracking systems to stay organized and compliant with TRID regulations. This includes ensuring that disclosures are given at the appropriate time and follow regulatory guidelines.

TRID documents are tailored to each potential mortgage with specific data. This addresses items such as:

  • Up-front mortgage cost
  • Loan rate
  • Loan type (fixed or variable)
  • Cost over life of the loan
  • Additional fees
  • Mortgage insurance (needed or not)
  • Penalties (late fees, early pay-off fees)
  • If borrowing against an existing home, the disclosure includes information on the right of rescission. This allows the borrower a three-day window in which to reverse his or her decision after signing on a mortgage.

Document preparation software guides lenders through TRID regulations, addresses them as necessary, and produces the right disclosures with the completed set of required data.

Managing and Storing TRID Documentation 

Once mortgages are signed, TRID paperwork must be retained for specified time periods per federal regulation. Instead of transporting physical loan files to archive facilities, some financial institutions use document management software, such as AccuAccount and AccuDoc, to enable electronic access to and retention of documents.

In addition, e-sign integrations can accelerate how electronically signed documents are brought into the bank’s document management system.

Document Management Resources

For more information about document management, be sure to check out our extensive resource library with free spreadsheets, whitepapers, and ebooks.

Browse our banking definitions page for more terminology.

Free Downloads

Bank auditor who is sitting at a desk and reviewing financial statements

Banks Audit & Exam Prep Study

[Study] Banks Audit & Exam Prep Learn how 187 other community bankers manage audit and exam prep. What’s Covered in this Summary Report? AccuSystems recently conducted a survey of 187 banking professionals, representing over $70 billion in combined assets at

Download for Free »
Desk that contains a laptop with the TicklerTrax spreadsheet

TicklerTrax Exception Spreadsheet

TicklerTrax™ Exception Spreadsheet Downloaded 1,000+ Times Looking for a free spreadsheet to track your financial institution’s exceptions? TicklerTrax might be the perfect tool for you! We’ve taken some of the basic logic from our top-rated document tracking system and boiled it

Download for Free »
Banker's desk that contains a stack of documents, a computer, and smartphone

eBook: Compliance & Bank Document Management

[eBook] Compliance & Bank Document Management Compliance is a tricky subject – especially when your financial institution is reliant on paper documents and manual tickler systems. In this free eBook, published by technology company, AccuSystems, you’ll encounter three compliance-related situations

Download for Free »

Related Articles