An adverse action notice is a document sent to a loan applicant stating a bank’s rationale for denying a loan. It may also contain a counteroffer, such as a lesser amount or a request for an approved co-borrower.
An authorized signer form is a document that allows an account holder to grant a range of clearance levels to individuals to perform certain functions within a bank account.

What Does TRID Mean in Banking?

TRID is an acronym that stands for TILA-RESPA Integrated Disclosures. TRID was developed with the intent to allow potential homebuyers to easily shop for the best deal on a mortgage by requiring lenders to provide standardized and transparent details about loans. It also protects homebuyers from confusing or misleading lending practices. The federal government implemented TRID to replace four previously required documents:

  • HUD-1 statement
  • Truth-in-Lending (TIL) statement
  • Truth-in-Lending disclosure
  • Good Faith Estimate (GFE)

Under TRID, these four documents were simplified into two:

Loan Estimate (due at application time)
Closing Disclosure (due just before closing)

TRID Document Preparation

Modern banks and credit unions use third-party document preparation and tracking systems to stay organized and compliant with TRID regulations. This includes ensuring that disclosures are given at the appropriate time and follow regulatory guidelines.

TRID documents are tailored to each potential mortgage with specific data. This addresses items such as:

  • Up-front mortgage cost
  • Loan rate
  • Loan type (fixed or variable)
  • Cost over life of the loan
  • Additional fees
  • Mortgage insurance (needed or not)
  • Penalties (late fees, early pay-off fees)
  • If borrowing against an existing home, the disclosure includes information on the right of rescission. This allows the borrower a three-day window in which to reverse his or her decision after signing on a mortgage

Document preparation software guides lenders through TRID regulations, addresses them as necessary, and produces the right disclosures with the completed set of required data.

Managing and Storing TRID Documentation 

Once mortgages are signed, TRID paperwork must be retained for specified time periods per federal regulation. Instead of transporting physical loan files to archive facilities, some financial institutions use document management software, such as AccuAccount and AccuDoc, to enable electronic access to and retention of documents.

In addition, e-sign integrations can accelerate how electronically signed documents are brought into the bank’s document management system.

Document Management Resources

For more information about document management, be sure to check out our extensive resource library with free spreadsheets, whitepapers, and eBooks.

Browse our banking definitions page for more terminology.

Explore more resources

Exception Tracking Cost Calculator

Exception tracking has many moving parts—from notice generation to recordkeeping and reporting. How much does it cost your financial institution each year? Find out with Alogent’s free calculator.
Read More »

Related articles

Tuesday 19 September 2023

From Data to Results: The Role of Personalization in Your Digital Banking Platform

One powerful strategy to enhance the user experience and drive engagement on digital platforms is through built-in contextual marketing. In the world of digital banking…

Learn More »

Wednesday 6 September 2023

[Playbook] Efficiently Managing To-Dos with Task Exceptions

Your financial institution is growing—more branches, more team members, more loan and account holders, and more follow-up. To keep pace with this complexity, you need…

Learn More »

Monday 28 August 2023

Exception Tracking: Is Now the Right Time to Upgrade Your Workflow?

Documentation and follow-up tasks for financial institutions to manage is commonplace—especially for banks and credit unions involved in commercial lending. Proactively tracking missing and expired…

Learn More »

Thursday 17 August 2023

[Playbook] Tracking and Resolving Recurring Document Exceptions

Proactively dealing with missing and expiring documents is a key component of an effective exception management strategy. However, that’s easier said than done when your…

Learn More »

Wednesday 9 August 2023

Six Steps to Maximize Your Financial Institution’s Digital Transformation Journey within the Digital Banking Channel

In today's rapidly evolving digital banking market, digital transformation and the adoption of cutting-edge, scalable solutions has become a necessity for banks and credit unions…

Learn More »

Tuesday 1 August 2023

Check Volumes are Declining, But Check Fraud is Rising: What’s it Costing your Financial Institution?

No financial institution – large or small – is protected from transaction or check fraud. And, the difficult reality for institutions is that fraud can…

Learn More »

Wednesday 26 July 2023

Boost Productivity at your Financial Institution with Enhanced Cold Storage

Cold storage systems can support numerous use cases at banks and credit unions. The phrase “cold storage” can be used to describe technology that manages…

Learn More »

Tuesday 18 July 2023

[Playbook] Interfacing Your Imaging System with eSign, LOS, & Other Systems

Your financial institution relies on a variety of technology to ensure efficient commercial lending operations—everything from loan origination systems (LOS) to eSign products. Wouldn’t it…

Learn More »