By Dennis Doss

  1. Is your borrower a bona fide business entity? If yes, TRID does not apply to loans to business entities and you may stop here.
  2. Is your collateral a 1-4 residential property? If no, TRID only applies to residential loans and you may stop here. If yes, proceed to the next question.
  1. Is the primary purpose of the loan personal, family or household? If no, TRID does not apply to business purpose loans and you can stop here. If Yes, TRID applies.
  1. If TRID applies:                                                                                                                                                           *You must have an NMLS endorsement to your lending license.                                                     *A Loan Estimate must be sent within 3 business days of a loan application. If the loan is High Cost (Section 32) a HOEPA disclosure is also due. Other disclosures are typically given at this time as well, such a fair lending, state disclosure, appraisal disclosure, credit score disclosure.                                                                                                                                             *Unless the borrower waives the early cooling off period to meet a bona fide personal financing emergency, you cannot close and record your loan until 7 business days after providing your Loan Estimate.                                                                                                                  *A final Closing Disclosure must be provided at least 3 business days before the signing of your final loan documents and closing.                                                                                                *If your loan is secured by the borrower’s principal dwelling a 3 day right to cancel must be given.                                                                                                                                                            *If your loan is High Cost (Section 32) a HUD counseling certificate is required before closing.