The TILA-RESPA Integrated Disclosure (TRID) rules—also known as Know Before You Owe (KBYO)—have been in effect since October 2015. These rules aim to make real estate lending more transparent, ensuring borrowers clearly understand their loan terms, fees, and costs. Despite years of industry adaptation, errors remain common in TRID loan disclosures. Missteps not only disrupt compliance with TRID guidelines but also expose lenders to tolerance cures, reimbursement costs, or regulatory findings.
Looking Back: Eight TRID Errors That Still Persist
This post builds on an article authored by Jim Treacy in 2022, Watch Out: TRID Errors – Eight Common TILA-RESPA Integrated Disclosure Errors, expanding it with practical detail, real-world examples, and additional errors frequently seen.
We are still finding the same eight common errors today that were identified in the article in 2022. To recap, the errors included the following:
1. Failing to Document a Change in Circumstance
Without a properly documented change in circumstance, lenders cannot reset fee tolerances. Examples include failing to document borrower requests, loan amount changes, or interest rate locks.
2. Fee Tolerance Violations
Omitting fees, misclassifying them (e.g., Services You Can vs. Cannot Shop For), or revising fees without a valid reason may result in violations that could lead to reimbursement to the borrower.
3. Improperly Handling Lender Credits
Once disclosed, lender credits cannot decrease unless tied to a valid change.
4. Missing Loan Estimates for Denied or Withdrawn Applications
Even if a loan does not close, a Loan Estimate (LE) must be provided within three business days of the application, unless the loan is denied or withdrawn within the same timeframe.
5. Inconsistent Disclosure Formats
LEs and Closing Disclosures (CDs) must use the same format. Using the alternative form for one disclosure and the standard form for the other disclosure does not conform to TRID requirements.
6. Missing Intent to Proceed Documentation
Collecting fees before documenting the borrower’s intent to proceed (other than credit report fees) is prohibited.
7. Insufficient Proof of Closing Disclosure Delivery
Borrowers must receive the CD three business days before closing. If delivery of the required documentation is not provided, the lender may be obligated to reimburse the consumer for associated costs or could be subject to additional penalties. Delivery methods include e-sign confirmations, mailing records, or signed receipts.
8. Expiration Dates on Revised Loan Estimates
Once the intent to proceed is documented, a revised LE should not display expiration dates. Leaving them in place may confuse borrowers and breach TRID rules.
Evolving TRID Compliance Risks for 2025
While the errors described in our previous article persist, we have since identified several additional common errors that impact TRID compliance, including:
Inconsistent Fee Names Across Disclosures
Using inconsistent fee names between the LE and CD, such as labeling a fee as “Settlement Agent Fee” on the LE and “Escrow Fee” on the CD, may obscure cost changes and potentially mislead borrowers.
Missing Service Provider List (SPL)
Failing to provide the SPL within three business days of application prevents proper classification of shoppable versus non-shoppable fees. If the SPL is late or missing, title fees may be misclassified, creating tolerance violations.
Incomplete or Missing Projected Payments Table
Every LE and CD must include accurate projected payments. Missing or blank tables fail TRID’s transparency goals.
Conflicting Issue Dates
Issuing the CD before the LE, or both documents reflecting the same issuance date, results in a compliance issue. For example, a compliance issue exists if the borrower signed a CD on 2/4/2025, but the LE was not issued until 2/10/2025.
Incomplete Contact Information
All required contact details, including the real estate agent or broker’s license number, must be provided unless the transaction qualifies for an exemption, such as a For Sale by Owner arrangement.
Each TRID error can trigger costly tolerance cures, delay closing, damage borrower trust, and draw regulatory scrutiny and penalties. With tolerance cures sometimes costing lenders hundreds of thousands of dollars annually, attention to detail is more than a regulatory necessity, it is a business imperative.
TRID Compliance Best Practices
- Standardized procedures: Use consistent fee names across disclosures.
- Leveraging technology wisely: Configure systems correctly but pair them with staff oversight.
- Thorough documentation: Retain evidence of change in circumstance, intent to proceed, SPL delivery, and disclosure timing.
- Regular training: Reinforce TRID guidelines through ongoing staff education.
- Periodic audits: Conduct file reviews to catch discrepancies before examiners do.
Keeping TRID Compliance on Track
The TRID rule reshaped how lenders communicate with borrowers in real estate transactions. While systems automate much of the process, compliance depends on vigilance. Jim Treacy’s original eight TRID errors remain the foundation, but today’s compliance environment shows even more pitfalls—from mismatched fee names to missing projected payments tables.
By understanding these risks and implementing strong TRID compliance risk mitigation practices, institutions can minimize errors, protect borrowers, and strengthen trust. In an industry where details matter, careful adherence to TRID requirements is the key to both compliance and customer confidence.
Authored by Shannon Singletary | November 2025
