Scenario: Bank is providing a construction loan, term less than 2 years, for purpose of construction of single family residence to be occupied by the borrowers. Collateral is a deed of trust on the lot and structure to be built. Part of the financing transaction involves purchase of the lot. A commitment letter for take out has been issued by another bank.

Is it required by law that the bank provide a copy of the
HUD-1 to the borrowers at least 24 hours before closing?
Is the purchase of the lot relevant at all in making the determination? That is, if the borrowers came to the transaction with ownership of the lot free and clear, would
it make a difference?

If not required by law to provide at least 24 hours in advance, should the bank endeavor to do so anyway as a "good practice"?

Thank you for your input.

Since this transaction involved a transfer of title to the first user, the construction/temporary financing exemption is out. All RESPA requirements apply.