TILA-RESPA loan compliance
TILA-RESPA Integrated Disclosure (TRID) is a combination of Truth in Lending Act (TILA) and Real Estate Settlement Procedures Act (RESPA). This regulation is specific to the US loan banking in the consumer real estate sector.
The Truth in Lending Act (TILA) of 1968 is a United States federal law designed to promote the informed use of consumer credit, by requiring disclosures about its terms and cost to standardize the manner in which its cost associated with the borrowing are calculated and disclosed.
RESPA was enacted to provide home buyers and sellers with complete settlement cost disclosures. The Act was also introduced to eliminate abusive practices in the real estate settlement process, to prohibit kickbacks, and to limit the use of escrow accounts. The main purpose of RESPA is to mandate certain disclosures in connection with the real estate settlement process so home purchasers can make informed decisions regarding their real estate transactions, and to prohibit certain unlawful practices by real estate settlement providers.
With the Hydrogen release of Q2 Origination, a process builder is introduced at the product level to enforce TRID compliance. The TRID regulation is to be enabled for the selected loan products. This ensures TRID regulation for all the applications created from these products.
To enforce the TRID compliance, you need to perform the following actions three days after the application status is changed to Submitted:
Run Generate TRID Estimate task.
A TRID loan estimate is generated. This estimate, includes the details related to the application that are shared with the borrower within the three days of application submission.
If there is change in any of the key parameters of the loan application, run the Regenerate TRID Disclosure task, and the regenerated loan estimate is shared with the borrower.
Run Generate Closing Disclosure task.
The closing disclosure is generated and shared with the borrower seven days prior to the expected closing date of the loan application.
Process Flow
The following image illustrates the process flow of TRID regulation:
Enable TRID Regulation
Prerequisites
None.
Steps
Perform the following steps to enable the TRID regulation on an application:
Log in to your Salesforce account.
Select the
App Launcher.
Search for Q2 Origination, and then select it.
On the CL Products tab, enable the TRID Loan check box while creating or editing a product.
Select Save.