March 26th, 2025 2:32 PM by Sam Kader NMLS# 130505
Understanding TRID and How to Avoid Closing Delays
The TILA-RESPA Integrated Disclosure (TRID) Rule, established under the Dodd-Frank Wall Street Reform and Consumer Protection Act, has been in effect since 2015. TRID standardizes the mortgage disclosure process, ensuring transparency for borrowers.
Under TRID, borrowers receive two key government-mandated disclosure forms:
Lenders are legally required to issue a Loan Estimate within three business days of receiving all six of the following items from the borrower:
Business days are defined as Monday through Friday, excluding legal public holidays. If any of these six components change, a Revised Loan Estimate must be issued at least one day before the Closing Disclosure or at least four days prior to closing.
The Closing Disclosure must be provided to the borrower at least three business days before closing. Unlike the Loan Estimate timeline, TRID defines business days for the Closing Disclosure as Monday through Saturday, excluding Sundays and legal public holidays.
The Closing Disclosure confirms the final loan terms and costs, aligning with:
Closing on time requires efficiency and coordination among all parties. Here are some common issues that may trigger delays in the mortgage process:
Once a Purchase and Sale Agreement (PSA) is signed, time is critical. Even minor delays in providing requested documents, signatures, or approvals can disrupt the closing timeline. Borrowers should respond promptly to all lender and escrow requests to keep the process moving smoothly.
Real estate transactions require decisive action. While it's important to conduct thorough research before signing a contract, once the PSA is in place, buyers and sellers must make timely decisions to avoid unnecessary holdups. Lean on your realtor and loan originator for guidance but be prepared to move forward confidently.
While online resources are valuable for general education, mortgage lending is highly nuanced. Conflicting advice from multiple sources can lead to confusion and unnecessary delays. Working directly with an experienced local mortgage broker and realtor ensures you receive expert, up-to-date guidance tailored to your situation.
Every real estate transaction comes with unique complexities. No two closings are the same, and minor hurdles along the way are common. Partnering with professionals who anticipate challenges and provide solutions will help you navigate the process efficiently.
Any changes to the six key elements of the Loan Estimate require a revised disclosure, which resets the three-day waiting period before proceeding to the Closing Disclosure stage. Minimizing last-minute adjustments helps prevent unnecessary setbacks.
Both the Loan Estimate and Closing Disclosure are sent electronically. However, the three-day waiting period only starts when the borrower opens and views the email. To avoid delays, borrowers should promptly review and acknowledge these disclosures upon receipt.
Lenders issue the Closing Disclosure in collaboration with the escrow company. If the escrow agent delays providing the Settlement Statement, the entire closing process can be affected. Proactive communication between all parties helps prevent this issue.
Successfully closing a mortgage transaction requires coordination among:
At Pacific Coast Financial LLC, we take a proactive and knowledgeable approach to ensure your closing stays on schedule. By working together, we can help you navigate the process smoothly and get you to the closing table on time.
For additional tips on closing efficiently, please reach out to your mortgage broker or escrow company today!