Which statement is true regarding mandatory homeownership counseling for high-cost mortgages?

The statement that counseling is required under limited circumstances is accurate because certain federal regulations mandate homeownership counseling for high-cost mortgages to protect borrowers from potential predatory lending practices. Specifically, the Dodd-Frank Wall Street Reform and Consumer Protection Act stipulates that lenders must ensure borrowers receive counseling before they secure high-cost loans, but this requirement only applies in specific situations where the loan meets certain criteria, such as exceeding thresholds for interest rates or fees.

This regulatory framework aims to ensure that borrowers are informed about the terms of the loan, their rights, and potential risks involved in high-cost mortgages. While there is a focus on providing education and informing borrowers, it is not universally required for every type of loan or for every borrower, thus making it necessary for the requirement to be applicable only under defined conditions.