GSEs Provide Guidance Regarding TRID Compliance

Freddie Mac Fannie Mae TRID Mortgage Origination

On October 6, Fannie Mae and Freddie Mac issued guidance stating that both GSEs, under the direction of the FHFA, “will not conduct routine post-purchase loan file reviews for technical compliance with the TRID Rule,” providing a “transitional period” for lenders to update their operational systems to adhere to the Rule’s requirements. However, the GSEs cautioned lenders that they “expect lenders to make good faith efforts to comply with TRID” and will evaluate whether lenders issued the new required disclosure during the mortgage origination process. Moreover, the guidance explains that “failure to use a TRID-required form” will be viewed as a violation, subjecting the loan to all contractual remedies, including repurchase.