What does the acronym TRID stand for?

The acronym TRID stands for TILA and RESPA Integrated Disclosures. This term refers to a rule implemented by the Consumer Financial Protection Bureau (CFPB) that integrates and simplifies the disclosure requirements of the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA). TRID was designed to improve the consumer experience by making it easier for borrowers to understand the costs associated with obtaining a loan and the terms of the closing process. The integrated disclosures include the Loan Estimate and the Closing Disclosure, which provide clear, standardized information to borrowers and help them compare loan offers more easily.

This integration reduces confusion by streamlining documents that previously were separate, thus enhancing transparency in the mortgage lending process. Understanding TRID is critical for those working in real estate and lending in Colorado, as it directly impacts how financial transactions are conducted and reported to consumers.