When preparing a corrected Closing Disclosure, under which of the following conditions is a three-day...

A corrected Closing Disclosure (CD) requires a new three-day waiting period before consummation if the following major changes occur:

The APR changes beyond the allowable tolerance (which is not the scenario here; hence, Option C is incorrect).

The loan product changes (e.g., switching from a fixed-rate to an adjustable-rate mortgage).

A prepayment penalty is added, which is the correct answer in this case. A prepayment penalty can significantly impact the borrower’s ability to repay the loan early without incurring additional costs, which is why this triggers a new waiting period.

Changes like the addition of an escrow account (A) or revisions to contact information (D) do not typically require the three-day waiting period, as they do not materially alter the terms of the loan in a way that would affect the borrower’s decision to proceed.