One of the key components of TRID, and more specifically the issuing of Loan Estimates (LE), is this concept of “good faith.” But what does that mean exactly?
TRID says the LE must be based on the best information you reasonably have available to you at the time the LE is issued. In other words, you’ve done your homework as to what the likely fees and charges will be. You haven’t guessed or estimated those amounts and have actually done the work to get the best information possible. For example, you’ve reached out to the title company about what their fees will be, investors, government entities, etc.
This concept of good faith also pops back up when you encounter changed circumstances and with the Closing Disclosure.
Listen as Jerod explains more in the video.
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Published
2022/10/03