TRID Glossary of Terms Part 2

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Intent to Proceed:

The borrower must sign an Intent to Proceed. The receipt of this intent provides the lender the ability to collect payment for fees, other than a credit report fee, from the consumer.
Loan Estimate (LE):

The form creditors are required to provide to consumers no later than the third business day after the receipt of the consumer’s application for a mortgage loan, and that contains good-faith estimates of credit costs and transaction terms. The form integrates and replaces the RESPA Good Faith Estimate and the initial Truth in Lending disclosure. Lender must deliver the LE to the consumer within three (3) business days of application and at least seven (7) business days before closing.

Quick Quiz

Fill in the Blank:
The borrower must sign an to Proceed.

Pre‐Application:

Prior to receiving the 6 specific items of information, lenders may provide consumers with written estimates, but any pre‐application written estimate must contain a disclaimer that it is not an official Loan Estimate.

Tolerances:

There are three (3) types of fee tolerances – zero tolerance, 10% tolerance, and those fees that are allowed to change.

Waiting Periods:

There is a seven day waiting period from receipt of initial LE to closing. There is a three day waiting period from borrower’s receipt of CD to closing.

Quick Quiz

Fill in the Blank:
There is a day waiting period from receipt of initial LE to .

Personal Delivery:

In person conveyances that are deemed immediately received.

Electronic Delivery:

Methods of electronic conveyance, such as email, that are deemed to have been received at the earlier of: (1) three business days after they are sent; or (2) upon evidence of receipt.

Intent to Proceed:

Oral or written communication by the borrower to the creditor after delivery of the Loan Estimate in which the borrower indicates their intention to move forward with the credit transaction. Silence is not indicative of intent to proceed.

TIP:

An acronym standing for Total Interest Percentage, it is the total amount of interest the borrower will pay over the loan term as a percentage of the loan amount.

Trigger:

Even that begins a timeline.

Quick Quiz

Fill in the Blank:
An acronym for Total Interest Percentage, it is the total amount of interest the borrower will pay over the loan term as a percentage of the loan .

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