Pub. 16 2021-22 Issue 3

NEBRASKA BANKERS ASSOCIATION 17 T HERE ARE SO MANY ways to violate TRID. Mastering the content requirements (knowing what to put where) is difficult for even the most seasoned compliance professional and is the source of numerous violations. Conquering the timing requirements (knowing when to give what) seems to be a much easier assignment, but it too causes numerous violations. When it comes to what information to include in disclosures and in which section, there are many gray areas, too much, in fact. However, the regulations are a lot more black and white when it comes to giving the disclosures. Let’s face it, TRID is difficult. First, even the name is challenging: TRID is an acronym made up of other acronyms. TRID is short for TILA-RESPA Integrated Disclosures. TILA is an acronym for the Truth in Lending Act, and RESPA is an acronym for the Real Estate Settlement Procedures Act. Second, many things related to TRID are conditional: the definition of “application” differs from most other regulations. There are multiple definitions of “business day,” and the regulations do not even address every common scenario, let alone every conceivable scenario. Third, the requirements are spread out: be sure to check the regulation, the commentary, the published guidance, any FAQs, and the occasional final rule preamble if you want to understand a requirement the best you can. If you’ve read this far, then you should know that the TRID requirements are largely about giving an applicant two “named” disclosures: the Loan Estimate and the Closing Disclosure. The Loan Estimate is a reliable estimate of costs provided early in the process to loan applicants to allow them to shop around for the best loan. The Closing Disclosure is a detailed listing of costs given just before closing to let the applicant know the confirmed cost of credit. In order for an extension of credit to be subject to the TRID requirements, it must be all of the following: 1) closed end, 2) made to a consumer, 3) for a consumer purpose, and 4) secured by real property. Once you’ve determined that your extension of credit is subject to the TRID requirements, the clock may have already started. The Loan Estimate (Contents: 1026.37; Timing 1026.19(e)) The clock on the TRID timing requirements begins as soon as the bank receives an “application,” which is defined specifically as submitting the applicant’s name, income, Social Security number, collateral property TRID Timing — continued on page 18