RESPA Changes Are Coming – Are You Ready?

As you may have heard from your members, on August 1, 2015 a new RESPA/Truth in Lending Act integration rule, often referred to as “TRID”, goes into effect that significantly changes the settlement process. The final rule integrates existing disclosures with new requirements from the Dodd-Frank Act to improve consumer understanding of the mortgage process, aid in comparison shopping, and help to prevent surprises at the closing table.

The major changes the rule implements include:

  • New “Loan Estimate” (LE) form replaces Good Faith Estimate (GFE) and initial Truth-in Lending disclosure; must be given to consumer within three business days of application
  • New “Closing Disclosure” (CD) form replaces and combines the HUD-1 and final Truth-in-Lending disclosures; must be received by consumer three days before consummation of loan

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