A creditor's affiliate originated a borrower's existing mortgage 18 months ago. The borrower now wants to refinance with the creditor for a lower rate. What documentation requirement applies?
Correct Answer
B) Standard tangible net benefit documentation is required due to the affiliate relationship
The tangible net benefit requirement applies when the creditor or its affiliate originated the existing mortgage. The affiliate relationship means the standard tangible net benefit analysis and documentation are required.
Why This Is the Correct Answer
The tangible net benefit requirement applies when the creditor or its affiliate originated the existing mortgage. The affiliate relationship means the standard tangible net benefit analysis and documentation are required.
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