Which of the following statements is TRUE regarding the periodic statement requirements for closed-end mortgages?

The correct statement regarding the periodic statement requirements for closed-end mortgages is that a servicer must deliver a periodic statement within 4 days of the close of the courtesy period of the previous billing cycle. This requirement is in place to ensure that borrowers receive timely and accurate information about their mortgage account, including the amount due, payment history, and other important details that aid them in managing their loans effectively.

Timely delivery of these statements is essential because it allows consumers to stay informed about their mortgage responsibilities, mitigates confusion about payments, and helps prevent potential late fees or negative impacts on their credit scores. The regulation emphasizes the importance of transparency in the mortgage servicing process, ensuring borrowers know what they owe and when payments are due.

In contrast, the other options do not align with the established requirements. The option regarding opting out entirely contradicts the regulation, which mandates that consumers receive regular periodic statements to maintain awareness of their loan status. The stipulation about not combining the periodic statement with other account statements is not accurate, as servicers may legally combine related information as necessary. Finally, while servicers are generally required to provide periodic statements monthly, there are some situations where the frequency may differ based on specific account circumstances, making the requirement not universally applicable. Therefore