TRID's scope excludes which type of transactions?

TRID's scope excludes which type of transactions?

• A. Corporate transactions
• B. Open-ended credit transactions secured by real property
• C. Student loans
• D. Credit card purchases

Answer: (A)

TRID is about the unified disclosure requirements for closed-end consumer mortgage loans secured by real property. It applies when an individual borrows to buy, build, or refinance a home and the loan is a consumer transaction. Corporate transactions—financing for a business or commercial real estate—aren’t consumer mortgages and don’t involve the TILA-RESPA disclosures that TRID standardizes, so they fall outside TRID’s scope. By contrast, loans to individuals for personal home purchases or refinanced mortgages are the kind TRID is designed to cover; student loans and credit card purchases aren’t mortgage transactions at all, so they aren’t governed by TRID either.

TRID is about the unified disclosure requirements for closed-end consumer mortgage loans secured by real property. It applies when an individual borrows to buy, build, or refinance a home and the loan is a consumer transaction. Corporate transactions—financing for a business or commercial real estate—aren’t consumer mortgages and don’t involve the TILA-RESPA disclosures that TRID standardizes, so they fall outside TRID’s scope. By contrast, loans to individuals for personal home purchases or refinanced mortgages are the kind TRID is designed to cover; student loans and credit card purchases aren’t mortgage transactions at all, so they aren’t governed by TRID either.