In 2010 Congress passed into Law the Dodd-Frank / Wall Street Reform Act. Part of the Dodd-Frank Act called for the merger of the Truth In Lending Act (TILA) formerly under the Federal Reserve bank and The Real Estate Settlement Act (RESPA) formerly under HUD, by the newly constructed Independent Federal Agency known as the Consumer Finance Protection Agency (CFPB.gov). The merger of these two major pieces of regulatory Acts became known as TILA- RESPA Integrated Disclosure or TRID.

As simple as this may sound it was a major undertaking. The former Good Faith Estimate and the Truth In Lending Forms have become merged into one form called the Loan Estimate. The former HUD closing statement has been changed to a new form called the Closing Disclosure. The Loan Estimate and Closing Disclosure are very similar in appearance.

There are a number of changes. The format of the new forms is completely different from the old one-page versions, or the 2010 HUD Good Faith Estimate. The Loan Estimate has grown from one page to three pages in 2010 to 7 pages in the CFPB version.

Some of the major impacts are the timelines imposed by the CFPB. Appraisals cannot be ordered until a formal acknowledgment or a three day waiting period. Upon the rate lock, an additional LE is issued. A CD must be electronically acknowledged three days prior to closing or eight days by mail. A CD cannot be issued on the same day as an LE so this may further delay your closing date.

Stay in constant contact with your Mortgage Loan Originator to guide you through the processes.