Which HOEPA requirement concerns disclosure to borrowers 3 days before closing?

Which HOEPA requirement concerns disclosure to borrowers 3 days before closing?

• A. Borrower receives additional disclosure 3 days prior to closing
• B. No disclosures are required
• C. Disclosures are provided at closing only
• D. Disclosures are provided 30 days prior to closing

Answer: (A)

HOEPA adds extra protections for high-cost mortgages by requiring a specific disclosure to the borrower before the loan is finalized. The key point is that an additional disclosure must be provided at least three business days before closing. This gives the borrower time to review the loan’s costs and terms—such as the APR, total fees, and the potential presence of a prepayment penalty—so they can assess whether the loan is affordable and shop for better terms if needed. The other options don’t fit because HOEPA does not require no disclosures, disclosures only at closing, or disclosures 30 days prior; the intended protection is the three-day pre-closing disclosure.

HOEPA adds extra protections for high-cost mortgages by requiring a specific disclosure to the borrower before the loan is finalized. The key point is that an additional disclosure must be provided at least three business days before closing. This gives the borrower time to review the loan’s costs and terms—such as the APR, total fees, and the potential presence of a prepayment penalty—so they can assess whether the loan is affordable and shop for better terms if needed. The other options don’t fit because HOEPA does not require no disclosures, disclosures only at closing, or disclosures 30 days prior; the intended protection is the three-day pre-closing disclosure.