Final answer:
Borrowers must receive additional disclosures 3 days prior to closing on high-cost home loans, according to TILA and Regulation Z, ensuring they are well-informed before finalizing the loan.
Step-by-step explanation:
The question concerns the necessary disclosures for high-cost home loans in the United States, governed by the Truth in Lending Act (TILA) and Regulation Z. According to these regulations, borrowers are mandated to receive additional disclosures at least three business days before the closing of high-cost home loans. Therefore, the correct answer is B) 3 days.
These disclosures are specifically crafted to offer consumers a comprehensive understanding of the costs and terms associated with high-cost loans. The three-day advance notice period is crucial as it provides borrowers with sufficient time to thoroughly review the loan terms, assess the financial implications, and make well-informed decisions before finalizing the loan closing. This regulatory framework aims to enhance transparency and empower borrowers with the necessary information to make prudent financial choices in the context of high-cost home loans.