Under TRID, which documents replace the GFE and HUD-1, and what is their purpose?

• A. The Appraisal Report replaces the GFE and HUD-1
• B. The Credit Report replaces the GFE; the Settlement Statement replaces HUD-1
• C. The Note replaces GFE; the Deed of Trust replaces HUD-1
• D. The Loan Estimate replaces the GFE; the Closing Disclosure replaces HUD-1; both provide disclosures of loan terms and closing costs

Answer: (D)

Under TRID, the two documents that replace the GFE and HUD-1 are the Loan Estimate and the Closing Disclosure. The Loan Estimate gives an early, estimated snapshot of loan terms and closing costs so borrowers can compare offers from different lenders. It must be provided within three business days of applying. The Closing Disclosure shows the final terms and actual closing costs and must be received at least three business days before closing. Together, they promote transparency by clearly detailing what is being borrowed, what it will cost, and what the final numbers look like, helping consumers shop confidently and avoid surprises at closing. The other documents listed (appraisal, credit report, notes, deeds of trust) are not the replacements for GFE and HUD-1 under TRID.