TRID is commonly known as which rule?

• A. Know Before You Owe Rule
• B. Hidden Fees Rule
• C. Mortgage Close Rule
• D. Final Statement Rule

Answer: (A)

TRID stands for TILA-RESPA Integrated Disclosure and is designed to present mortgage information in a clear, standardized way so borrowers can understand and compare loan terms and costs. It is commonly known as the “Know Before You Owe” rule because it emphasizes providing transparent, easy-to-compare disclosures before the borrower commits, helping decisions be made with full awareness of what will be paid. Under TRID, the lender gives a Loan Estimate within three business days of application and a Closing Disclosure at least three business days before closing, replacing the older Good Faith Estimate and Truth in Lending Statement with a more transparent process. The Loan Estimate outlines expected costs and terms, while the Closing Disclosure confirms the final numbers, making it easier to compare actual costs across lenders. The other names don’t match the well-known nickname or the purpose of this rule.