Federal Mortgage LawsQuestion 39 of 400
Before closing a high-cost mortgage subject to HOEPA, the lender must generally ensure the borrower receives:
a.Homeownership counseling from a HUD-approved counselor and a special HOEPA disclosure at least three business days before closing
b.A cash rebate equal to the points charged
c.A guaranteed fixed interest rate for life
d.Free title insurance
Explanation
HOEPA requires that borrowers of high-cost mortgages receive homeownership counseling from a HUD-approved counselor and a special disclosure at least three business days before consummation. There is no requirement for a points rebate, a lifetime fixed rate, or free title insurance. These protections help ensure borrowers understand the risks of high-cost loans.
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