Final answer:
The correct answer is C) 60 days. Lenders have 60 days from the discovery of a Section 32 violation to correct the issue and comply with the requirements of high-cost mortgages under the Home Ownership and Equity Protection Act.
Step-by-step explanation:
A lender making a Section 32 loan has 60 days from the date a Section 32 violation is discovered to bring the loan into compliance. This period allows lenders the opportunity to correct any issues and ensure that they are fulfilling the legal requirements associated with these types of high-cost mortgages. It is essential for lenders to track their loan terms and compliance deadlines closely to avoid legal complications and to protect borrowers.
Section 32 loans are a specific type of home mortgage that fall under the Home Ownership and Equity Protection Act (HOEPA) of 1994. They include certain mortgages with high interest rates or high fees, where additional disclosure requirements and restrictions are put in place to protect consumers. Knowledge of credit, understanding mortgage terms such as the typical 15 or 30-year mortgage durations, and awareness of the legal frameworks governing these loans are crucial for lenders and borrowers alike.