What is true regarding the Closing Disclosure for Kelly's home purchase?

The correct choice states that the Closing Disclosure must be provided by the lender by the Friday of the week before closing. This timing requirement is part of the regulations established under the Truth in Lending Act and the Real Estate Settlement Procedures Act, which aim to ensure that borrowers have adequate time to review the final terms of their mortgage before the closing date.

The Closing Disclosure is a critical document that outlines the terms of the loan, the costs associated with it, and details about the closing process. By mandating that it be provided a specific time before closing, the rules help ensure that buyers are informed and can make necessary decisions or ask questions prior to finalizing the transaction. This advance notice is intended to reduce surprises and allow for a smoother closing process.

In contrast, the other options misrepresent the requirements around the Closing Disclosure. The lender is not permitted to deliver the disclosure on the day of closing, verbally communicate the terms, or make it optional. This helps emphasize the importance of the document and the buyer's right to adequate preparation time ahead of closing.