Finance
What is the purpose of the TRID (TILA-RESPA Integrated Disclosure) rule in Pennsylvania real estate transactions?
ATo regulate real estate commission rates in Pennsylvania
BTo provide buyers with standardized loan disclosures (Loan Estimate and Closing Disclosure) improving transparency about mortgage terms and closing costs✓ Correct
CTo require lenders to obtain PREC approval before issuing mortgages in Pennsylvania
DTo establish maximum interest rates for Pennsylvania home loans
Explanation
TRID (effective 2015) replaced the HUD-1 and GFE with two standardized forms: the Loan Estimate (given within 3 business days of application) and the Closing Disclosure (given at least 3 business days before closing). TRID improves transparency by presenting loan terms and closing costs in a standardized, comparable format. Pennsylvania buyers have the right to review their Closing Disclosure before closing and compare it to their Loan Estimate.
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