Mortgage Lending Regulations Explained: The Rules That Protect You

Mortgage lending regulations can sound like a wall of letters: TRID, QM, RESPA, ECOA, HMDA. But behind each abbreviation is a simple idea about protecting you. I think every borrower should know the basics, so here is a plain explanation of the main mortgage lending regulations and what each one means for you when you apply.

One note before we begin. Rules change. Congress, the CFPB and other regulators update them, and I do not want you relying on an article for the current version. This page explains the long-standing ideas behind the rules, and for the latest, check the CFPB at consumerfinance.gov. I have deliberately left out dates and details of recent changes.

TRID stands for the TILA-RESPA Integrated Disclosure rule. In everyday terms, it gives you two standard forms. The Loan Estimate must be provided within three business days of your application, and it shows expected terms, monthly payment and closing costs. The Closing Disclosure is a five-page form with the final details, and your lender must provide it three business days before closing. Because every lender uses the same forms, you can compare them. See how to compare loan estimates.

What does TRID mean?

It is the TILA-RESPA Integrated Disclosure rule, which created the Loan Estimate and the Closing Disclosure. Lenders use the same standard forms so you can compare.

What is a Qualified Mortgage?

It is a loan with less risky features, designed to make it more likely you can afford it. The CFPB says it cannot include things like interest-only periods or balloon payments.

Where do I file a complaint about a Texas mortgage company or loan officer?

You can file with the Texas Department of Savings and Mortgage Lending, which requires a signed, written complaint, or submit a complaint to the CFPB. My Texas SML notice page has the notice and links.

Are mortgage rules the same today as last year?

Not necessarily. Rules and guidance change, so check consumerfinance.gov for the current versions before relying on any summary, including this one.