What is the maximum charge a creditor or closing agent can impose for preparing the Closing Disclosure?

The correct answer is zero, meaning that there is no charge that a creditor or closing agent can impose for preparing the Closing Disclosure. This requirement stems from regulations aimed at promoting transparency and fairness in the closing process for mortgage loans. The intention is to ensure that borrowers are not burdened by unnecessary fees for a document that is essential to the transaction.

The Closing Disclosure is a critical document that outlines the final terms and costs of the mortgage transaction. By prohibiting fees for its preparation, the regulations help protect consumers and ensure that they receive clear and complete information without incurring additional costs that may inhibit their understanding of the financial obligations they are undertaking. This regulation reinforces ethical standards in the lending process and encourages lenders and closing agents to prioritize the customer experience without placing additional financial burdens on borrowers.