TRID Dictionary of Terms

  • CFBP = Consumer Financial Protection Bureau
  • CLOSING DISCLOSURE = Similar to the old HUD statement. The delivery of this form in final version mailed at least 6 business days before closing and 3 business days electronic receipt is the equivalent of our old “Clear to Close” (see sample)
  • CONSUMER’S LOAN APPLICATION = Similar to the previous Mortgage Application. A loan application might include the buyer’s name, a property address, desired loan amount, social security number (to obtain a credit report), estimate of the property value, and monthly income. Within three business days of receiving the information needed for the application, the lender or mortgage broker must provide the buyer with a Good Faith Estimate, which can be used to compare the loan quote to loan quotes from other lenders and mortgage brokers. Mortgage lenders cannot charge for a Consumer Loan Application.
  • CONSUMMATION = Closing
  • GFE = Good Faith Estimate, a form that lists basic information about the terms of a mortgage loan following a consumer’s loan application, delivered within 3 days. A Buyer cannot be charged any fees, except a credit report fee, until after the buyer receives a GFE and indicates that they plan to take out the home loan.
  • HELOC = Home Equity Line of Credit
  • LOAN ESTIMATE = New form, discloses the cost of the mortgage. Terms must be accepted by the Buyer before proceeding. This is a three-page form that the buyer receives after applying for a mortgage. The Loan Estimate tells you important details about the loan requested.  The lender must provide you a Loan Estimate within three business days of receiving an application.
  • RESPA = Real Estate Settlement Procurement Act: the federal act that governs the real estate industry.
  • TILA = Truth in Lending Act
  • TRID = TILA [Truth in Lending Act] RESPA [Real Estate Settlement Procurement Act] Integrated Disclosure

Developed with: Academy Mortgage, Adams Community Bank, Berkshire Bank, Greylock Federal Credit Union, Lee Bank, MountainOne Bank, Salisbury Bank, and Trustco Bank.