Definition
TRID (Truth in Lending Act-Real Estate Settlement Procedures Act) is the federal rule requiring lenders to provide standardized disclosure forms showing you exactly what you're paying for and how much everything costs.
Not sure where this fits?
Answer a few questions and we’ll open the path that fits, at the right step.
Find my pathAbout this term
TRID (Truth in Lending Act-Real Estate Settlement Procedures Act) is a federal regulation that consolidated and improved two earlier disclosure requirements. TRID requires lenders to provide the Loan Estimate within 3 days of loan application and the Closing Disclosure at least 3 days before closing. Both forms use standardized formats to make it easier for borrowers to compare loan offers and understand their actual costs. The regulation protects borrowers by ensuring clear, consistent disclosures.
Pro Tip
Understand your rights under TRID. You must receive the Loan Estimate within 3 days and Closing Disclosure 3 days before closing.
Example
Under TRID rules, the borrower received a Loan Estimate three days after applying for the loan and a Closing Disclosure three days before closing, allowing time to compare and ask questions.