Question 70

The primary purpose of TRID is to disclose information about the cost of closing.

TRID, or the TILA-RESPA Integrated Disclosure rule, is designed to enhance transparency for consumers by ensuring they receive clear information about the costs associated with closing on a mortgage loan.

A) disclose information about the cost of closing

This option is correct as TRID's main goal is to provide consumers with detailed disclosures regarding the costs involved in closing, thereby helping them make informed decisions about their mortgage.

B) require use of a settlement statement.

While TRID does integrate some elements of the settlement statement, its primary focus is not just on the requirement of a settlement statement but rather on the broader aspect of cost disclosure. Therefore, this option does not accurately reflect TRID's main purpose.

C) set limitations on the amount lenders can charge

This option is incorrect because TRID does not impose limits on lender charges. Instead, it aims to provide borrowers with clear information about existing costs rather than regulate those costs.

D) give the right of rescission to each buyer

Although the right of rescission is an important consumer protection feature, it is not the primary focus of TRID. The rule's main emphasis is on ensuring that consumers understand the costs of closing, making this option inaccurate in the context of TRID's purpose.

Conclusion

In summary, the primary purpose of TRID is to ensure consumers are fully informed about the costs associated with closing on a mortgage, which is effectively achieved through detailed disclosure. Other options either misinterpret the rule’s focus or address aspects that are secondary to TRID’s main goal. Thus, Option A stands out as the correct response.