Pub. 9 2021 Issue 2

utah.bank 6 COMPLIANCE CORNER THE BLACK AND WHITE OF TRID TIMING By John Berteau, Associate General Counsel, Compliance Alliance 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

RkJQdWJsaXNoZXIy MTIyNDg2OA==