August 1st is less than three months away. I hope you understand the significance of this date. If you don’t, you may have been living under a rock for awhile. The Truth in Lending Act/Real Estate Settlement Procedures Act Integrated Disclosure (TRID) goes into effect on that day.
TRID is the CFPB’s latest attempt to protect consumers from themselves. According to their small entity compliance guide, the CFPB says “The TILA-RESPA rule consolidates four existing disclosures required under TILA and RESPA for closed-end credit transactions secured by real property into two forms: a Loan Estimate that must be delivered or placed in the mail no later than the third business day after receiving the consumer’s application, and a Closing Disclosure that must be provided to the consumer at least three business days prior to consummation.”
I’ve heard some who think this is a disclosure regulation. And it primarily is. It changes the TIL and RESPA forms and changes the closing process. Because of this, some are relying primarily on their software or forms provider to make sure they are in compliance.continue reading »