A New York lender determines a loan is high-cost on May 1, 2026, and closing is May 20. What delivery deadlines apply to the high-cost caution notice?
Correct Answer
A) The caution notice is due within 3 days and at least 10 days before closing
A lender or broker shall not make or arrange a high-cost home loan unless it has given the consumer caution and home ownership counseling notice in writing to the borrower within three days after determining that the loan is a high-cost home loan, but no less than ten days before closing. Other choices: the notice comes well before closing; the three and the ten attach as stated rather than the other way round; and the trigger is the determination rather than the application. Source: N.Y. Banking Law § 6-l(2)(l)(ii)
Why This Is the Correct Answer
A lender or broker shall not make or arrange a high-cost home loan unless it has given the consumer caution and home ownership counseling notice in writing to the borrower within three days after determining that the loan is a high-cost home loan, but no less than ten days before closing. Other choices: the notice comes well before closing; the three and the ten attach as stated rather than the other way round; and the trigger is the determination rather than the application. Source: N.Y. Banking Law § 6-l(2)(l)(ii)
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