What is required in terms of advance payments under HOEPA regulations?

Under the Home Ownership and Equity Protection Act (HOEPA) regulations, there are strict guidelines concerning advance payments on high-cost loans. The correct choice reflects that no advance payments can be taken unless specific conditions are met. This regulation is in place to protect consumers from lenders who might impose unfair or deceptive practices, particularly in high-cost loan scenarios.

Essentially, HOEPA aims to prevent situations where borrowers could be pressured into making payments prior to receiving any benefits from the loan itself, thus preventing potential exploitation. By establishing that no advance payments are permitted without meeting criteria, the regulation enhances transparency and safeguards the borrower's financial interests.

The other options suggest conditions that either allow or restrict advance payments in a manner not aligned with HOEPA's intent, which focuses on consumer protection against high-cost loans. Therefore, it is key to understand that HOEPA's framework emphasizes protecting consumers from excessive financial obligations without clear benefits associated with such payments.