Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

TRID: New Mortgage Disclosure Rules Take Effect

Author: Scarinci Hollenbeck, LLC

Date: October 13, 2015

Key Contacts

Back

The new Truth in Lending Act-Real Estate Settlement Procedures Act Integrated Disclosure (TRID) rule went into effect on October 3, 2015.

If your business is not fully prepared to comply with the new disclosure requirements, time is of the essence.

TRID

TILA-REPSA Rule Compliance & TRID

Under the TRID Rule, mortgage lenders must use new forms that combine the mortgage disclosures required under the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act of 1974 (RESPA). In contrast to prior template forms, the new documents require greater customization and detailed information regarding the specific loan transaction.

The new integrated disclosures under the TRID rule apply to most closed-end consumer mortgages. The rule does not apply to home equity lines of credit (HELOCs), reverse mortgages, or mortgages secured by a mobile home or by a dwelling that is not attached to real property.

The Good Faith Estimate (GFE) and the initial Truth-in-Lending disclosure are combined into a new form, known as the Loan Estimate. These disclosures are intended to help consumers in understanding the key features, costs, and risks of the mortgage loan and must be provided to consumers no later than the third business day after they submit a loan application

The HUD-1 and final Truth-in-Lending disclosure have been combined into another new form, the Closing Disclosure. It designed to provide disclosures that will be helpful to consumers in understanding all of the costs of the transaction and comparing loans from different lenders. The Closing Disclosure must be provided to consumers at least three business days before consummation of the loan.

Other stipulations of TRID Rule

The TRID Rule also contains new record keeping obligations. In general, lenders must retain evidence of compliance for three years after the later of consummation or the date a disclosure is required. The final Closing Disclosure, however, must be retained for five years after loan consummation by the creditor. In addition, although the disclosures may delivered by other entities, such as mortgage brokers, lenders retains liability for ensuring that the documents are provided in accordance with the rule.

The sweeping changes mandated by the TRID Rule represent one of the most significant regulatory overhauls of the mortgage industry in decades. The new documents are very different from what banks are currently using. To implement the changes, most lenders must not only revise their forms, but also significantly amend their business processes, technology requirements, lending policies and procedures, contracts with service providers, and employee training. Accordingly, compliance not only requires careful planning, but also significant resources.

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
Why Compliance Monitoring Matters for NY and NJ Businesses post image

Why Compliance Monitoring Matters for NY and NJ Businesses

Compliance programs are no longer judged by how they look on paper, but by how they function in the real world. Compliance monitoring is the ongoing process of reviewing, testing, and evaluating whether policies, procedures, and controls are being followed—and whether they are actually working. What Is Compliance Monitoring? In today’s heightened regulatory environment, compliance […]

Author: Dan Brecher

Link to post with title - "Why Compliance Monitoring Matters for NY and NJ Businesses"
When Are New Jersey Business Owners Personally Liable for Corporate Debt? post image

When Are New Jersey Business Owners Personally Liable for Corporate Debt?

New Jersey personal guaranty liability is a critical issue for business owners who regularly sign contracts on behalf of their companies. A recent New Jersey Supreme Court decision provides valuable guidance on when a business owner can be held personally responsible for a company’s debt. Under the Court’s decision in Extech Building Materials, Inc. v. […]

Author: Charles H. Friedrich

Link to post with title - "When Are New Jersey Business Owners Personally Liable for Corporate Debt?"
Commercial Real Estate Trends to Watch in 2026 post image

Commercial Real Estate Trends to Watch in 2026

Commercial real estate trends in 2026 are being shaped by shifting economic conditions, technological innovation, and evolving tenant demands. As the market adjusts to changing interest rates, capital flows, and workplace models, investors, owners, tenants, and developers must understand how these trends are influencing opportunities and risk in the year ahead. Overall Outlook for Commercial […]

Author: Michael J. Willner

Link to post with title - "Commercial Real Estate Trends to Watch in 2026"
One Big Beautiful Bill: New Tip Income Tax Rules Employers & Workers Need to Know post image

One Big Beautiful Bill: New Tip Income Tax Rules Employers & Workers Need to Know

Part 2 – Tips Excluded from Income Certain employees and independent contractors may be eligible to deduct tips from their income for tax years 2025 through 2028 under provisions included in the One Big Beautiful Bill. The deduction is capped at $25,000 per year and begins to phase out at $150,000 of modified adjusted gross […]

Author: Scott H. Novak

Link to post with title - "One Big Beautiful Bill: New Tip Income Tax Rules Employers & Workers Need to Know"
One Big Beautiful Bill: New Overtime Tax Rules Employers and Employees Need to Know post image

One Big Beautiful Bill: New Overtime Tax Rules Employers and Employees Need to Know

Part 1 – Overtime Pay and Income Tax Treatment Overview This Firm Insights post summarizes one provision of the “One Big Beautiful Bill” related to the tax treatment of overtime compensation and related employer wage reporting obligations. Overtime Pay and Employee Tax Treatment The Fair Labor Standards Act (FLSA) generally requires that overtime be paid […]

Author: Scott H. Novak

Link to post with title - "One Big Beautiful Bill: New Overtime Tax Rules Employers and Employees Need to Know"
New York’s FAIR Business Practices Act: What the New Consumer Protection Measure Means for Your Business post image

New York’s FAIR Business Practices Act: What the New Consumer Protection Measure Means for Your Business

In 2025, New York enacted one of the most consequential updates to its consumer protection framework in decades. The Fostering Affordability and Integrity through Reasonable Business Practices Act (FAIR Act) significantly expands the scope and strength of New York’s long-standing consumer protection statute, General Business Law § 349, and alters the compliance landscape for New York […]

Author: Dan Brecher

Link to post with title - "New York’s FAIR Business Practices Act: What the New Consumer Protection Measure Means for Your Business"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form. By providing a telephone number and submitting this form you are consenting to be contacted by SMS text message. Message & data rates may apply. Message frequency may vary. You can reply STOP to opt-out of further messaging.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!