The TILA-RESPA Integrated Disclosure rule — mandating the standardized Loan Estimate and Closing Disclosure forms that all mortgage lenders must provide.
Full Definition
TRID (commonly called 'Know Before You Owe') is a CFPB rule that took effect in 2015, combining TILA and RESPA disclosure requirements into two standardized forms. The Loan Estimate must be delivered within 3 business days of application and provides an estimate of loan terms, projected payments, and closing costs. The Closing Disclosure must be provided at least 3 business days before closing and shows final loan terms and actual costs. TRID requires that certain fees cannot increase between the Loan Estimate and Closing Disclosure without a 'valid changed circumstance.' The rule gives consumers time to review and compare costs before committing.
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