Tired, reckless, and in denial? That’s not really what TRID stands for—it’s just a bit of compliance humor. You do need to know about TRID, though, because this is one of those situations where ignorance could cost your bank money.
TRID is short for TILA-RESPA Integrated Disclosure, a new regulation that became effective October 3, 2015. It applies to all closed-end mortgage loans secured by real estate of any kind. Here’s how it affects you:
To promote their mortgage products, many banks will offer a dollar-amount credit to help cover closing costs. The promotional credit is then reflected in the initial loan estimate disclosures provided to the borrower. Under the new regulation, whatever figure is written into the loan estimate must be given to the borrower in full—even if ends up being greater than the actual closing costs. So more than ever, you have to be careful about how you market those campaigns.
Hear Patti J. Blenden, CRCM, president of Financial Solutions for Growing Companies, Inc. explain how it works and how you can protect yourself.
Patti’s remarks were recorded at the recent ABA Bank Marketing Conference in Denver.