For a qualified mortgage (QM) refinance, the tangible net benefit requirement applies to which type of refinance transactions?
Correct Answer
C) All refinances of existing QM loans
Under 12 CFR 1026.43(e)(3), the tangible net benefit requirement applies to all refinances of existing qualified mortgages, regardless of whether they are cash-out or rate-and-term refinances, to ensure borrowers receive meaningful benefit from the transaction.
Why This Is the Correct Answer
Under 12 CFR 1026.43(e)(3), the tangible net benefit requirement applies to all refinances of existing qualified mortgages, regardless of whether they are cash-out or rate-and-term refinances, to ensure borrowers receive meaningful benefit from the transaction.
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