TRID Explained

What is TRID?

TRID stands for TILA-RESPA Integrated Disclosure. It's a set of federal rules created by the Consumer Financial Protection Bureau (CFPB) that govern how lenders disclose mortgage details to buyers.

TRID combines and simplifies two previous laws—Truth in Lending Act (TILA) and Real Estate Settlement Procedures Act (RESPA)—into a streamlined process that helps borrowers better understand the terms, costs, and risks of their home loan. It also introduces specific timelines and documents that are required during the mortgage process.

🔑 Key Components of TRID

1. Loan Estimate (LE)

The Loan Estimate is a standardized, three-page document you receive within 3 business days of applying for a mortgage. It outlines important details such as your interest rate, monthly payment, estimated closing costs, and whether those terms can change later.

The LE helps you shop around and compare loan offers in an apples-to-apples way—an especially helpful tool in Massachusetts where loan terms can vary widely by lender and property type.

2. Closing Disclosure (CD)

The Closing Disclosure is a five-page form that you receive at least 3 business days before closing. It confirms your final loan terms, costs, and any changes from the original Loan Estimate.

This 3-day review period is critical—it gives you time to ask questions or spot errors before you sign your closing documents.

3. The 3-Day Rule

TRID includes a built-in buffer: buyers must receive the Closing Disclosure at least 3 business days before closing. If any significant changes occur—such as a change in loan product or APR—this timeline resets, potentially delaying the closing.

That’s why it's important for everyone involved—buyers, sellers, agents, and lenders—to work in sync and avoid last-minute changes that could trigger delays.

4. Who TRID Applies To

TRID applies to most consumer-purpose mortgage loans (purchases and refinances), including primary residences and second homes. It does not apply to reverse mortgages, home equity lines of credit (HELOCs), or commercial loans.

In Massachusetts, where many buyers are purchasing with financing, TRID is a part of almost every transaction involving a lender.

💡 Why TRID Matters

TRID was created to protect homebuyers from surprises and hidden fees, promoting a transparent and standardized mortgage process. It empowers buyers to fully understand their loan terms and ensures that closing costs and timelines are communicated clearly and consistently.

For sellers, TRID helps create predictability in the closing process—when followed correctly, it reduces the risk of delays due to paperwork or miscommunication.

In competitive Massachusetts markets, where multiple-offer situations and tight timelines are common, knowing how TRID works can give both buyers and sellers a strategic edge.