What Is TRID?

Short answer

TRID is the CFPB rule that combined the Truth in Lending Act and Real Estate Settlement Procedures Act disclosures into two forms: the Loan Estimate, due within three business days after you apply, and the Closing Disclosure, which you must receive at least three business days before closing (CFPB, as of October 2026). It also limits how much certain fees can increase between the two forms. TRID is why every mortgage lender's paperwork looks the same and why closing dates cannot move at the last minute.

Definition

TRID ('Know Before You Owe') standardizes mortgage cost disclosures and their timing so borrowers can compare offers and are not surprised at closing. It applies to most closed-end consumer mortgages; HELOCs and most business-purpose investor loans follow different rules.

Worked example

You submit the six application items on Thursday, October 1. The Loan Estimate must be delivered by Tuesday, October 6 (Friday, Saturday, Monday count as business days for this purpose; Sunday does not). It shows lender fees of $1,495 in Section A and third-party fees of $3,800 in Sections B and C. At closing, the Section A fees must still be $1,495 (zero tolerance). Section B and shoppable fees you chose from the lender's list can rise no more than 10% in total, so up to $4,180. If they came in at $4,400, the lender refunds the $220 difference. Doc stamps and intangible tax, which depend only on the loan amount, should be identical on both forms.

The two TRID forms

• Loan Estimate: three pages, delivered within three business days of application; an estimate with tolerance protections.
• Closing Disclosure: five pages, received at least three business days before closing; the final numbers.
• An 'application' is six items: name, income, Social Security number, property address, estimated value and loan amount.
• A revised Loan Estimate is allowed only for a valid changed circumstance, such as a different loan amount or a low appraisal.

Fee tolerances

Zero tolerance: lender fees, transfer taxes, and fees for services you could not shop for. 10% cumulative tolerance: recording fees and third-party services you chose from the lender's list. No tolerance limit: prepaid interest, homeowners insurance, escrow deposits and services where you picked your own provider. If a fee exceeds tolerance, the lender refunds the difference at or shortly after closing.

In South Florida

For Miami buyers, TRID's practical effects are timing and taxes. Timing: a late HOA estoppel, insurance binder or condo questionnaire can push the Closing Disclosure, and the three-day wait then pushes closing, so Florida contracts should allow a cushion. Taxes: Florida doc stamps and intangible tax appear in Section E as government charges; they are not subject to the 10% tolerance because they are set by statute, but they must be estimated correctly from the start. Investors using DSCR or hard money loans in an LLC generally do not receive TRID forms at all, because those are business-purpose loans.