Skip to content

Illinois exam glossary

TILA-RESPA Integrated Disclosure

TRID is a timing system as much as a forms system. The six-piece application starts the Loan Estimate clock. The Loan Estimate supports shopping. The Closing Disclosure supports final review. Revised disclosures handle valid changes, but only three specific changes restart the last three-day wait.

Last updated: August 1, 2026

What does this exam area cover?

Short answer: TRID integrates federal mortgage disclosures into the Loan Estimate and Closing Disclosure for most closed-end consumer loans secured by real property or a cooperative unit. A six-piece application triggers the Loan Estimate, generally due within three general business days and at least seven specific business days before consummation. The consumer generally receives the Closing Disclosure three specific business days before consummation. TRID also restricts upfront fees, controls estimate revisions, groups charges into tolerance categories, and requires cures for tolerance violations.

Official section
National IV: Financing
Broker weight
10% of the national broker portion
Expected scored items
Financing accounts for about 10 of 100 items

This guide follows the PSI Illinois Candidate Information Booklet effective June 24, 2026 and current Regulation Z sections 1026.2, 1026.19, 1026.37, and 1026.38 as amended through April 8, 2026, all checked through August 1, 2026. The CFPB's July 9, 2026 request for information seeks public input but did not itself change the rule. Construction phases, timeshares, corrected disclosures, seller forms, assumptions, housing assistance, cooperatives, electronic delivery, and annual thresholds require additional fact-specific review.

What is on the official outline?

Topic
Expand the acronym
What to know
TILA, RESPA, integrated disclosure, Regulation Z, Regulation X, CFPB, Loan Estimate, Closing Disclosure, former GFE, HUD-1, and Truth in Lending disclosure
Best exam move
TRID is the integrated disclosure framework, not a third federal statute.
Topic
Test loan coverage
What to know
closed-end, consumer purpose, real property, cooperative unit, purchase, refinance, construction, vacant land, subordinate lien, dwelling, and creditor
Best exam move
Begin with closed-end consumer credit and the real-property or cooperative security interest.
Topic
Identify excluded products
What to know
HELOC, reverse mortgage, chattel dwelling, mobile home, no real property, five-or-fewer creditor, housing assistance, partial exemption, and other disclosure form
Best exam move
No TRID form does not mean no federal disclosure duty.
Topic
Recognize the application
What to know
name, monthly income, Social Security number, credit report, property address, estimated value, loan amount sought, six pieces, additional information, and receipt
Best exam move
Once all six items arrive, the creditor cannot delay the clock by demanding a seventh item.
Topic
Deliver the Loan Estimate
What to know
three business days, deliver, mail, application, creditor, mortgage broker, good faith, transaction terms, closing costs, shopping, and retention
Best exam move
The creditor remains responsible even when a mortgage broker provides the form.
Topic
Apply the seven-day wait
What to know
Loan Estimate, delivery or mailing, seven business days, consummation, Saturday, Sunday, federal holiday, waiver, bona fide emergency, and timeshare
Best exam move
The seven-day period starts on delivery or mailing and uses the specific business-day definition.
Topic
Restrict early fees
What to know
Loan Estimate receipt, intent to proceed, bona fide credit report fee, application fee, appraisal fee, underwriting fee, payment method, check, card number, and authorization
Best exam move
Before receipt and intent, only a bona fide reasonable credit-report fee can generally be imposed.
Topic
Separate intent from acceptance
What to know
intent to proceed, written, oral, email, consumer, creditor record, loan approval, rate lock, contract, fee authority, and estimate expiration
Best exam move
Intent permits the process and fees to continue; it is not final loan approval or a rate lock.
Topic
Provide the shopping list
What to know
required service, consumer may shop, written list, provider, contact, at least one, three business days, separate document, settlement service, and tolerance
Best exam move
For each shoppable required service, the creditor gives at least one available provider on the written list.
Topic
Apply zero tolerance
What to know
creditor fee, mortgage broker fee, affiliate, transfer tax, required service, cannot shop, disclosed charge, increase, cure, and permitted revision
Best exam move
Absent a valid revised baseline, the applicable zero-tolerance charges cannot increase at consummation.
Topic
Apply 10% aggregate tolerance
What to know
recording fee, required service, consumer may shop, provider list, listed provider, aggregate total, ten percent, individual increase, decrease, cure, and comparison
Best exam move
Compare the category total, not each fee separately, for the 10 percent test.
Topic
Apply no numerical tolerance
What to know
prepaid interest, property insurance, escrow deposit, optional service, shoppable service, off-list provider, property tax, homeowner association, good faith, and best information
Best exam move
No numerical cap does not authorize careless or knowingly inaccurate estimates.
Topic
Recognize a changed circumstance
What to know
extraordinary event, inaccurate relied-on information, new information, credit quality, appraisal, title issue, property use, loan amount, and eligibility
Best exam move
The event must affect settlement charges or eligibility and fit the regulatory definition.
Topic
Issue a revised estimate
What to know
three business days after knowledge, valid reason, affected charge, supporting documentation, four business days before consummation, receipt, Closing Disclosure, and baseline
Best exam move
Revise promptly and only to the extent the permitted reason actually caused the change.
Topic
Deliver the Closing Disclosure
What to know
consumer receipt, three business days, consummation, creditor responsibility, settlement agent, final terms, itemized costs, cash to close, loan calculations, and confirmations
Best exam move
The creditor must ensure timely receipt even when the settlement agent helps prepare or deliver the form.
Topic
Use the specific business day
What to know
calendar day, Saturday, Sunday, federal legal public holiday, receipt presumption, electronic delivery, evidence, mailing, and waiting period
Best exam move
For the Closing Disclosure wait, Saturday counts unless it is a federal holiday.
Topic
Restart only for three changes
What to know
inaccurate APR, tolerance, loan product change, fixed to adjustable, prepayment penalty added, corrected disclosure, new three-day wait, and consummation
Best exam move
Memorize APR, product, penalty; other corrected items generally do not restart the entire wait.
Topic
Correct other changes
What to know
seller credit, walk-through, tax proration, utility proration, recording fee, payment, cash to close, typo, corrected Closing Disclosure, consummation, and post-consummation
Best exam move
Give the corrected form on time, but do not invent a restart trigger.
Topic
Cure tolerance violations
What to know
creditor payment, consumer refund, 60 calendar days, corrected disclosure, zero tolerance, ten-percent aggregate, excess, documentation, and post-closing
Best exam move
A timely cure can reimburse the excess and correct the Closing Disclosure after consummation.
Topic
Separate consummation and settlement
What to know
contractually obligated, state law, signing, closing, funding, disbursement, recording, possession, rescission, and calendar
Best exam move
TRID waiting periods run to consummation, which is determined under applicable state law, not simply the recording date.

Which distinctions produce the most mistakes?

Terms
TRID vs. TILA
Difference
TILA is the statute. TRID is the integrated mortgage-disclosure framework implemented mainly through Regulation Z.
Question cue
Broad credit law versus disclosure system.
Terms
Loan Estimate vs. Closing Disclosure
Difference
The Loan Estimate supports early shopping with estimated terms. The Closing Disclosure supports final review of actual transaction terms.
Question cue
Estimate early versus final before consummation.
Terms
Application vs. prequalification
Difference
A TRID application exists when the six defined pieces are submitted. Prequalification is an informal label that does not override receipt of those items.
Question cue
Federal data trigger versus marketing stage.
Terms
Intent to proceed vs. loan approval
Difference
Intent authorizes continuation and applicable fees. Approval is the creditor's underwriting decision.
Question cue
Keep processing versus accept credit risk.
Terms
General vs. specific business day
Difference
General means a day the creditor is open for substantially all functions. Specific means every calendar day except Sunday and federal legal holidays.
Question cue
Office schedule versus federal calendar.
Terms
Delivery vs. receipt
Difference
Delivery is when the creditor sends or hands over the form. Receipt is when the consumer obtains it or is presumed to obtain it under the rule.
Question cue
Sent versus received.
Terms
Zero tolerance vs. 10% aggregate
Difference
Zero-tolerance charges cannot increase absent a valid revision. The 10 percent category permits aggregate increase up to its limit.
Question cue
No increase versus group ceiling.
Terms
No tolerance vs. no good-faith duty
Difference
No numerical tolerance permits actual variation. It does not remove the duty to estimate using the best information reasonably available.
Question cue
Flexible result versus careless estimate.
Terms
Changed circumstance vs. market increase
Difference
A changed circumstance must fit the regulatory event or information test. A provider simply raising price does not automatically qualify.
Question cue
Defined cause versus ordinary cost growth.
Terms
Revised Loan Estimate vs. corrected Closing Disclosure
Difference
A revised Loan Estimate can reset estimates before the Closing Disclosure when permitted. A corrected Closing Disclosure updates final information under its own timing rules.
Question cue
Revised estimate versus corrected final.
Terms
Consummation vs. recording
Difference
Consummation occurs when the consumer becomes contractually obligated on credit under state law. Recording gives public notice of an instrument.
Question cue
Credit obligation versus land-record filing.
Terms
Three-day CD review vs. rescission
Difference
CD review occurs before consummation. Rescission, when applicable, runs after consummation and excludes purchase mortgages.
Question cue
Review first versus cancel qualifying credit later.

The T-R-I-D check

  1. Test the transaction: confirm closed-end consumer credit secured by real property or a cooperative unit and check exemptions.
  2. Recognize the application: mark the date all six pieces arrived and calculate the Loan Estimate deadline under the general business-day rule.
  3. Inspect estimates: classify each charge as zero, 10 percent aggregate, or no numerical tolerance and document provider-shopping rights.
  4. Deliver and update: track intent to proceed, fees, seven-day wait, valid revision reasons, Closing Disclosure receipt, restart triggers, consummation, and cures.
Event
Loan Estimate delivery or mailing
Deadline
Within 3 days after application
Business-day rule
General creditor-open definition
Event
Loan Estimate before consummation
Deadline
At least 7 days before
Business-day rule
Specific calendar definition
Event
Revised Loan Estimate receipt
Deadline
At least 4 days before consummation
Business-day rule
Specific calendar definition
Event
Closing Disclosure receipt
Deadline
At least 3 days before consummation
Business-day rule
Specific calendar definition
Event
Tolerance cure
Deadline
Within 60 calendar days after consummation
Business-day rule
Calendar days

How do the rules work in scenarios?

Six pieces start the clock

Scenario: On Monday, a creditor receives a borrower's name, monthly income, Social Security number for credit, property address, value estimate, and requested loan amount.

  1. All six application elements have arrived.
  2. The creditor cannot wait for tax returns or the purchase contract to recognize the application.
  3. If its offices perform substantially all functions Monday through Friday, Thursday is the third general business day.

Answer: The Loan Estimate must be delivered or mailed no later than Thursday.

Fee restriction

Scenario: Before delivering a Loan Estimate, a lender asks the consumer to pay a $600 appraisal fee and a $35 credit-report fee.

  1. The consumer has not received the Loan Estimate or indicated intent to proceed.
  2. A bona fide reasonable credit-report fee can fit the limited exception.
  3. The appraisal fee cannot generally be imposed yet.

Answer: The $35 credit-report fee may be allowed; the $600 appraisal fee is premature.

Calculate the CD waiting period

Scenario: The consumer receives the Closing Disclosure in person on Thursday. No federal holiday occurs, and consummation is planned for Monday.

  1. Friday is business day one.
  2. Saturday is business day two.
  3. Sunday is excluded, and Monday is business day three.

Answer: Consummation may occur on Monday under the stated timing facts.

Loan product change restarts waiting

Scenario: After the initial Closing Disclosure, the creditor changes the loan from a fixed-rate mortgage to an adjustable-rate mortgage.

  1. Fixed to adjustable is a loan-product change.
  2. A corrected Closing Disclosure is required.
  3. The consumer must receive it and complete a new three-specific-business-day waiting period.

Answer: The product change restarts the three-day wait.

Tax proration does not restart waiting

Scenario: A final walk-through and updated county figure change the seller-buyer tax proration after the Closing Disclosure.

  1. The proration must be corrected on the final disclosure.
  2. It is not an inaccurate APR, product change, or added prepayment penalty.
  3. The creditor can provide a corrected Closing Disclosure at or before consummation under the applicable rule.

Answer: Correct the form, but do not restart the full waiting period solely for this proration.

Ten-percent aggregate test

Scenario: Listed-provider shoppable services and recording fees were estimated at $2,000 total and cost $2,230 without a valid revision.

  1. Ten percent of $2,000 is $200.
  2. The permitted aggregate is therefore $2,200.
  3. Actual charges exceed that amount by $30.

Answer: The creditor must cure the $30 excess if all stated charges belong in that tolerance bucket.

No numerical tolerance still requires good faith

Scenario: A creditor intentionally understates prepaid interest even though the rate and expected consummation date are known.

  1. Prepaid interest generally has no numerical tolerance.
  2. The estimate still must use the best information reasonably available and be made in good faith.
  3. The absence of a percentage cap does not authorize deliberate understatement.

Answer: The estimate can violate the good-faith standard despite being in a no-tolerance category.

What are the common exam traps?

Trap
Calling TRID a separate statute
Correction
It is an integrated disclosure framework implemented mainly through Regulation Z.
Trap
Using TRID forms for a HELOC
Correction
HELOCs use separate open-end Regulation Z disclosures.
Trap
Demanding a purchase contract before recognizing an application
Correction
Receipt of the six defined pieces starts the Loan Estimate clock.
Trap
Using only weekdays for every deadline
Correction
The seven-day and Closing Disclosure waits count Saturdays unless a federal holiday.
Trap
Charging an appraisal fee before Loan Estimate and intent
Correction
Only a bona fide reasonable credit-report fee fits the ordinary early-fee exception.
Trap
Calling intent to proceed loan approval
Correction
It authorizes continuation and fees but does not decide underwriting.
Trap
Calling a Loan Estimate a rate lock
Correction
The form states whether the rate is locked and the lock's timing; delivery alone does not lock it.
Trap
Applying 10% to each fee separately
Correction
That tolerance is tested across the applicable category in aggregate.
Trap
Treating no tolerance as permission to guess
Correction
All estimates remain subject to the good-faith and best-information standards.
Trap
Revising estimates whenever a provider raises price
Correction
The revision needs a regulatory reason that actually caused the increased charge.
Trap
Sending a revised LE after the Closing Disclosure
Correction
The creditor cannot issue a revised Loan Estimate on or after providing the Closing Disclosure.
Trap
Restarting the CD wait for every change
Correction
Only inaccurate APR beyond tolerance, loan-product change, or added prepayment penalty triggers the new wait.
Trap
Calling the CD wait a right to rescind
Correction
It is a pre-consummation review period, not a post-closing cancellation right.
Trap
Using recording as consummation
Correction
Consummation depends on when the consumer becomes contractually obligated under applicable state law.
Trap
Treating a pending rulemaking request as current law
Correction
The July 2026 CFPB request sought information and did not amend TRID by August 1, 2026.

Can you answer these original practice questions?

These questions are original study items aligned to the published outline. They are not copied, recalled, or predicted PSI questions.

1. What does TRID integrate?

  1. TILA and RESPA mortgage disclosures
  2. ECOA and CERCLA
  3. The deed and appraisal
  4. Zoning and building codes
Show answer and explanation

Answer: TILA and RESPA mortgage disclosures

The two principal forms are the Loan Estimate and Closing Disclosure.

2. How many defined data pieces create a TRID application?

  1. Four
  2. Five
  3. Six
  4. Ten
Show answer and explanation

Answer: Six

The creditor cannot add a seventh piece to delay the federal clock.

3. When is the Loan Estimate generally due?

  1. Within three general business days after application
  2. At consummation only
  3. Thirty days after appraisal
  4. After final approval only
Show answer and explanation

Answer: Within three general business days after application

It also must be delivered or mailed at least seven specific business days before consummation.

4. Which fee can generally be imposed before LE receipt and intent to proceed?

  1. A bona fide reasonable credit-report fee
  2. The appraisal fee
  3. The underwriting fee
  4. The full origination charge
Show answer and explanation

Answer: A bona fide reasonable credit-report fee

Other fees ordinarily wait until both required events occur.

5. Which day usually counts in the Closing Disclosure waiting period?

  1. Saturday
  2. Sunday
  3. Every federal holiday
  4. No calendar day
Show answer and explanation

Answer: Saturday

The specific definition excludes Sundays and federal legal public holidays.

6. Which change restarts the Closing Disclosure waiting period?

  1. The loan product changes from fixed to adjustable
  2. A tax proration changes
  3. The seller credit decreases slightly
  4. A typo in the broker address is corrected
Show answer and explanation

Answer: The loan product changes from fixed to adjustable

Inaccurate APR beyond tolerance and addition of a prepayment penalty are the other two triggers.

7. How is the 10 percent tolerance tested?

  1. Across the applicable charges in aggregate
  2. Against each individual fee only
  3. Against the loan amount
  4. Against the appraisal value
Show answer and explanation

Answer: Across the applicable charges in aggregate

Individual items can move more or less as long as the applicable total stays within the permitted increase.

8. Can a revised Loan Estimate be issued after the Closing Disclosure?

  1. No
  2. Yes, at any time
  3. Only after recording
  4. Only by the real estate broker
Show answer and explanation

Answer: No

Later corrections use the Closing Disclosure process.

9. Does intent to proceed guarantee loan approval?

  1. No
  2. Yes
  3. Only for FHA
  4. Only in Illinois
Show answer and explanation

Answer: No

Underwriting and property approval remain separate.

10. What did the CFPB's July 9, 2026 mortgage RFI do?

  1. Requested public information without itself changing TRID
  2. Repealed the Closing Disclosure
  3. Changed the application to seven pieces
  4. Eliminated all waiting periods immediately
Show answer and explanation

Answer: Requested public information without itself changing TRID

A request for information is part of policy development, not a final amendment.

How should you study this area?

Session
Session 1
Focus
Test coverage and application
Proof you are ready
Classify 30 covered and excluded loans, then identify the exact date all six application pieces arrived in 20 timelines.
Session
Session 2
Focus
Master business days
Proof you are ready
Calculate 35 Loan Estimate, seven-day, revised-estimate, Closing Disclosure, mailing, holiday, and consummation deadlines.
Session
Session 3
Focus
Classify tolerances
Proof you are ready
Sort 50 lender, broker, affiliate, title, appraisal, recording, prepaid, escrow, insurance, optional, and off-list charges.
Session
Session 4
Focus
Control revisions
Proof you are ready
Audit 30 changed-circumstance, consumer-request, rate-lock, expiration, construction, cost-increase, and late-revision facts.
Session
Session 5
Focus
Review the forms
Proof you are ready
Annotate every Loan Estimate and Closing Disclosure section using current CFPB samples and reconcile two full transactions.
Session
Session 6
Focus
Run T-R-I-D
Proof you are ready
Audit two Illinois closings, score at least 90 percent on the questions, and explain every missed distractor.

Do not count recognition as mastery. Close the notes and explain the rule, apply it to a new fact pattern, and identify why each distractor fails.

Practice the topic in Pass Illinois

From concept to decision

Drill this topic, then review the explanation

Pass Illinois gives you original national and Illinois questions, topic-by-topic study, clear explanations, timed practice, flashcards, progress tracking, and Math Coach. Start free, find the weak distinction, and focus the next session there.

Questions students ask about TRID: Illinois Real Estate Exam Guide

What does TRID mean?

TRID means TILA-RESPA Integrated Disclosure. The CFPB combined four older federal mortgage disclosures into two main forms for most covered closed-end consumer mortgages: the Loan Estimate and Closing Disclosure. TRID is not a separate act of Congress. Its operative rules appear mainly in Regulation Z, with related RESPA and Regulation X requirements.

Which loans does TRID cover?

TRID generally covers closed-end consumer credit secured by real property or a cooperative unit. Common examples include purchase mortgages, refinances, construction-only loans, vacant-land loans secured by real property, and many subordinate liens. Coverage and partial exemptions require careful review. The rule does not turn every loan connected with a home into a TRID transaction.

Which loans are not covered by TRID?

TRID does not use the Loan Estimate and Closing Disclosure for home-equity lines of credit, reverse mortgages, or credit secured by a mobile home or another dwelling that is not also real property. Certain creditors making five or fewer covered mortgages in a year and qualifying housing-assistance loans can receive specified exemptions. Other TILA or RESPA disclosures may still apply.

What six pieces create a TRID application?

A TRID application contains the consumer's name, monthly income, Social Security number to obtain a credit report, property address, estimated property value, and mortgage amount sought. Once the creditor receives those six pieces, the Loan Estimate clock begins. The creditor can request more information but cannot redefine application to delay the federal deadline.

When is the Loan Estimate due?

The creditor must deliver or mail the Loan Estimate no later than the third general business day after receiving the application and no later than the seventh specific business day before consummation. For the first deadline, a business day is one on which the creditor's offices are open for substantially all business functions. The seven-day rule counts Saturdays but excludes Sundays and federal legal holidays.

Can a lender charge fees before the Loan Estimate?

Generally, the creditor or another person cannot impose a fee before the consumer receives the Loan Estimate and indicates an intent to proceed. A bona fide and reasonable credit-report fee is the main exception. The consumer cannot be forced to pay an appraisal, application, underwriting, or other fee to receive the Loan Estimate.

When is the Closing Disclosure due?

The consumer must receive the Closing Disclosure no later than three specific business days before consummation. For this waiting period, business day means every calendar day except Sunday and federal legal public holidays. If it is not delivered in person, receipt is presumed three business days after delivery or mailing unless the creditor has evidence of earlier actual receipt.

Which Closing Disclosure changes restart the three-day waiting period?

A new three-business-day waiting period is required if the disclosed APR becomes inaccurate beyond the Regulation Z tolerance, the loan product changes, or a prepayment penalty is added. Other changes generally require a corrected Closing Disclosure at or before consummation but do not restart the full wait. A lower cash-to-close number alone is not one of the three restart triggers.

What are TRID fee tolerances?

TRID compares specified estimated charges with actual charges. Certain creditor, broker, affiliate, and required nonshoppable fees generally have zero tolerance. Recording fees and required shoppable services from the written provider list generally share a 10 percent aggregate tolerance. Prepaid interest, property insurance, escrow deposits, optional services, and qualifying off-list shoppable services generally have no numerical tolerance, although estimates must still be in good faith.

Can the lender revise a Loan Estimate whenever costs rise?

No. A revised Loan Estimate can reset the comparison baseline only for permitted reasons such as a valid changed circumstance, consumer-requested change, rate lock, expiration after the consumer did not timely indicate intent, or certain delayed-construction timing. The creditor generally must issue the revision within three business days after learning enough to establish the reason and cannot issue it after the Closing Disclosure.

Are these official PSI questions or TRID advice?

No. The questions are original. Primary sources were checked through August 1, 2026, including the current PSI Illinois outline and Regulation Z as amended April 8, 2026. The CFPB opened a mortgage-rule request for information on July 9, 2026, but no resulting TRID amendment was in force by the cutoff. This is exam education, not disclosure or compliance advice.

Primary sources

Was this guide useful?

Choose one response. You can add a short note, especially if a rule, example, or explanation needs work. No name or email is requested.