📄 What Is TRID (TILA RESPA Integrated Disclosure) in Real Estate?

TRID, short for the TILA RESPA Integrated Disclosure rule, is a federal mortgage regulation that requires lenders to provide borrowers with clear, standardized disclosures during the home loan process. TRID ensures buyers understand their interest rate, closing costs, and loan terms well before settlement, improving transparency and reducing last-minute surprises.

How TRID (TILA RESPA Integrated Disclosure) Works

The TRID rule replaced older disclosure forms with two simplified documents: the Loan Estimate (LE) and the Closing Disclosure (CD). These documents help borrowers understand all loan details before they commit to closing.

TRID requires lenders to provide:

  • Loan Estimate (LE) — must be delivered within 3 business days after the borrower applies for the loan.
  • Closing Disclosure (CD) — must be delivered at least 3 business days before closing.
  • Accurate estimates of closing costs, prepaid expenses, and lender fees.
  • A clear breakdown of interest rate, APR, and total cost over the life of the loan.

These disclosures help borrowers compare loan offers, understand rate changes, and confirm that final numbers match what was originally quoted.

Why TRID Matters in Real Estate Transactions

Benefits for Buyers:

  • Provides full transparency on interest rates and closing costs.
  • Prevents last-minute fee increases or unexpected charges.
  • Helps buyers compare loan options between different lenders.
  • Creates guaranteed time to review final loan terms before closing.

Benefits for Sellers:

  • Reduces closing-day disputes caused by incorrect numbers.
  • Creates predictable timelines for settlement.
  • Ensures the buyer is financially prepared and fully informed.
  • Helps avoid last-minute lender delays that can derail a closing.

TRID is enforced by the CFPB and applies to most consumer mortgage loans, including purchases, refinances, construction loans, and some home improvement loans.

Examples of TRID Rules in Action

Here are common real estate situations where TRID applies:

  • A buyer applies for a mortgage and receives a Loan Estimate within 3 business days.
  • The Closing Disclosure is sent 3 business days before closing, allowing the buyer time to review fees.
  • A change to the APR, loan product, or prepayment penalties triggers a new 3-day waiting period.
  • Lender or title company fees cannot increase beyond allowed tolerance levels unless permitted by TRID.

These rules help ensure buyers have enough time to understand the full cost of their mortgage before signing closing documents.

Why TRID Matters for FSBO Sellers

FSBO sellers should be aware of TRID timelines because the buyer’s lender controls when closing can occur. If TRID deadlines are missed, closing must be delayed—even if the buyer and seller are ready.

  • The Closing Disclosure’s 3-day rule can delay or reschedule closing dates.
  • Last-minute changes in fees may trigger a new waiting period.
  • Lenders, buyers, and title companies must work in sync to stay compliant.
  • Sellers must plan for TRID-related delays when coordinating movers or possession dates.

Using Flat Fee MLS helps FSBO sellers streamline communication and anticipate TRID-related scheduling changes.