The Loan Estimate - Loandepot

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The Loan Estimate
Overview:
The new TRID Regulation is effective for applications taken on or after October 3, 2015. For these applications,
the GFE, TIL, and HUD-1 will no longer be issued. The Loan Estimate will replace the GFE and initial TIL. The
Closing Disclosure will replace the HUD-1 and final TIL.
What is TRID?
The TILA-RESPA Integrated Disclosure (“TRID”) rule is intended to improve the way consumers receive information
about mortgage loans—both when they apply and when they are getting ready to close. The rule introduces two
new disclosure forms: the Loan Estimate, which is delivered to the consumer within three business days after
application, and the Closing Disclosure, which is received by the consumer at least three business days prior to
signing the loan documents.
The TRID rule also amends the definition of what constitutes an “application,” limiting the necessary elements to
six items: consumer’s name, income, social security number to obtain a credit report, property address, estimate
of the value of the property, and the loan amount sought.
The Loan Estimate and Closing Disclosure will be required on any application taken on or after October 3, 2015.
The GFE, HUD-1, and Truth-in-Lending forms will still need to be used for applications dated prior to October 3,
2015.
Note: The “application accepted” date is not relevant to the TRID rule.
What is the Loan Estimate?
The Loan Estimate represents a combination of the Good Faith Estimate and Initial Truth-in-Lending disclosure. It
is designed to provide disclosures that will be helpful to consumers in understanding the key features, costs, and
risks of the mortgage loan for which they are applying.
For closed-end credit transactions secured by real property (other than reverse mortgages), the creditor is
required to provide the consumer with good-faith estimates of credit costs and transaction terms on a new form
called the Loan Estimate. This form integrates and replaces the existing RESPA GFE and the initial TIL for these
transactions. The creditor is required to provide the Loan Estimate within three-business days of taking the
application.

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