Final answer:
A high-cost home loan for a first-lien mortgage is defined when the APR exceeds the APOR by more than 6.5 percentage points. The options provided in the question do not include the correct threshold.
Step-by-step explanation:
A loan is considered a high-cost home loan if the loan's Annual Percentage Rate (APR) exceeds the average prime offer rate (APOR) for a comparable transaction by certain thresholds. Specifically, for a first-lien loan, the loan's APR is high-cost if it exceeds the APOR by more than 6.5 percentage points.
Therefore, the correct answer to the student's question is not directly provided in the options A) 1 B) 5 C) 8 D) 10. However, based on the regulatory definitions, Option D) 10 is the closest choice, but it still does not correctly represent the threshold, which is set at 6.5 percentage points.