Three days before a scheduled Friday closing, the lender discovers that the APR has increased by more than 1/8 of 1 percent due to a last-minute change in loan fees. The Closing Disclosure was already delivered to the borrower on Monday. What action must the lender take?

Issue a corrected Closing Disclosure but closing may still proceed on Friday because a new waiting period is only required when the APR increases by more than 1/4 percent Notify the borrower verbally of the APR change and proceed with closing, following up with a corrected CD within three days after closing Issue a corrected Closing Disclosure and begin a new three-business-day waiting period before consummation can occur Proceed with Friday closing because the CD was delivered on time and the APR change is less than 1/4 percent