When buying or selling a home, it’s easy to get lost in the maze of paperwork and legal requirements. One critical set of regulations that affects nearly every real estate transaction involving a mortgage is TRID — short for TILA-RESPA Integrated Disclosure. Recently, updates and new addendums have been added to ensure more transparency and protection for both buyers and sellers. Here’s what TRID means, what’s new, and why it matters in today’s real estate world.

What Is TRID?

TRID, introduced by the Consumer Financial Protection Bureau (CFPB) in 2015, combines the disclosure requirements of two major consumer protection laws:

• TILA – Truth in Lending Act

• RESPA – Real Estate Settlement Procedures Act

The goal of TRID is simple: to make mortgage documents easier for consumers to understand. Before TRID, buyers received multiple forms that were confusing and often repetitive. TRID simplified the process by merging them into two key documents:

1. Loan Estimate (LE) – Given within three business days after applying for a mortgage, it outlines the estimated loan terms, interest rate, monthly payments, and closing costs.

2. Closing Disclosure (CD) – Provided at least three business days before closing, it gives the final details of the loan, including all costs, fees, and cash-to-close amount.

What’s in the New TRID Addendum?

The new TRID addendum serves as an additional layer of compliance that helps ensure both parties—especially lenders and settlement agents—are on the same page regarding the timing and accuracy of disclosures.

This addendum clarifies:

• Responsibilities and timelines for issuing revised Loan Estimates and Closing Disclosures.

• Communication requirements between lenders, agents, and closing attorneys to ensure timely delivery of documents.

• Acknowledgments that all parties understand TRID timelines—particularly the three-day review period before closing.

• Disclosure updates if there are changes to the loan terms, such as interest rate adjustments or new fees.

In essence, the TRID addendum helps maintain transparency throughout the transaction and ensures that closing deadlines are met while complying with federal disclosure requirements.

Why TRID (and Its Addendum) Matters in Real Estate

1. Transparency and Consumer Protection

TRID ensures that homebuyers clearly understand what they are signing up for—no hidden fees, no last-minute surprises at the closing table. The new addendum reinforces this transparency by confirming that all parties acknowledge disclosure timelines.

2. Reduces Last-Minute Delays

One of the biggest challenges in real estate closings is timing. The TRID rule’s strict timeline for delivering the Closing Disclosure helps prevent last-minute delays that can frustrate both buyers and sellers.

3. Improves Accountability

With the new addendum, there’s a formal acknowledgment of who is responsible for preparing, reviewing, and delivering disclosures. This keeps lenders, agents, and title companies accountable and reduces the risk of compliance violations.

4. Builds Trust Between Parties

By ensuring that everyone follows the same transparent process, TRID builds trust in the real estate transaction. Buyers feel confident that they’re not being misled, and sellers can rest assured that the transaction complies with federal law.

5. Protects Against Legal Risks

Failure to comply with TRID can result in costly penalties, rejected closings, or even legal action. The new addendum helps real estate professionals document compliance and minimize these risks.

What Real Estate Professionals Should Know

For agents and brokers, understanding TRID is crucial for managing timelines and keeping clients informed. Here are key takeaways:

• Encourage clients to review the Loan Estimate carefully within the first few days.

• Remind them that no closing can occur until the three-day CD review period is complete.

• Coordinate with lenders and closing attorneys early to avoid delays.

• Use the new TRID addendum to clarify roles and maintain compliance records.

By doing so, you not only protect your clients but also maintain your reputation as a trusted and compliant real estate professional.

The TRID rules and the new addendum are designed to make real estate transactions more transparent, fair, and predictable. They protect buyers from unexpected costs, ensure accurate communication between professionals, and uphold compliance standards across the mortgage industry.

For anyone buying or selling property, understanding how TRID works—and how the addendum strengthens its application—can make the difference between a smooth closing and a stressful one.

If you’re planning a real estate transaction, always work with experienced agents and lenders who are well-versed in TRID compliance. Their knowledge ensures your deal stays on track and legally sound from start to finish.

Matt Witte strives to be the best realtor in North Andover, MA.

Any questions about real estate, reach out to Matt Witte, North Andover Realtor, MA-