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#168124 - 03/10/04 02:27 PM Refi - Net Tangible Benefit
BeachGirl Offline
100 Club
Joined: Sep 2001
Posts: 206
Myrtle Beach, SC
I have noticed that several mortgage companies have created a disclosure for the borrower to sign regarding the net tangible benefit rule for refinance loans. The one I am reading right now is very lengthy. One of the statements contained in the document follows: "We understand the benefits to us of obtaining this loan and certify that this transaction results in a reasonable tangible net benefit to us." I don't recall that the statute requires this disclosure and I wonder how well it would hold up with an examiner, especially if the loan did not meet any of the tests for a qualified "net tangible benefit". What are your thoughts on this and are you planning to include a similar disclosure in your refinance packages?
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#168125 - 03/10/04 03:08 PM Re: Refi - Net Tangible Benefit
Cowboys Fan Offline
Power Poster
Joined: Dec 2002
Posts: 4,598
SC
I don't buy it. I would think that if the loan didn't fall into one or more of the "safe harbors", having a form signed by the consumer would not suffice.

In-house loans: we're not using a form like this.
Mortgage loans: not sure what they've decided upon.
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#168126 - 03/15/04 02:10 PM Re: Refi - Net Tangible Benefit
DawgFan Offline
Diamond Poster
DawgFan
Joined: Jul 2002
Posts: 1,678
United States
Yeah, I agree with Cowboy. This sounds like a way to weasel out of the requirements of the APL. From what I gather, you need to be able to document one of those 7 or 8 safe harbors (I don't remember right off how many there are)or you better be prepared to do some fast talking.
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Opinions expressed are solely my own.

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#168127 - 09/15/05 09:13 PM Re: Refi - Net Tangible Benefit
Anonymous
Unregistered

can you send me a copy of the form you are referring to?

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#168128 - 10/05/05 09:30 PM Re: Refi - Net Tangible Benefit
BeachGirl Offline
100 Club
Joined: Sep 2001
Posts: 206
Myrtle Beach, SC
Anonymous, if you will send me a PM with your fax #, I'll try to find that document for you. However, I don't think it is worth the paper it is written on.
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Thanks for all of your help!

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