TRID covers which type of credit transactions?

• A. Close ended consumer credit transactions secured by real property
• B. Open-ended credit transactions
• C. Personal loans
• D. Corporate loans

Answer: (A)

TRID applies to closed-end consumer mortgage loans, specifically those secured by real property. It was created to simplify and standardize disclosures for these real estate transactions by combining TILA and RESPA requirements into a single set of forms (the Loan Estimate and the Closing Disclosure) that borrowers receive during the process. Because it targets loans that are repaid in a finite number of payments and are secured by real estate, it does not cover open-end lines of credit (like HELOCs), personal loans, or corporate loans. So, loans for purchasing or refinancing real estate are the type TRID governs.