How frequently can a borrower refinance the same property while still meeting tangible net benefit requirements?
Correct Answer
C) As often as each transaction provides tangible net benefit
Under 12 CFR 1026.43(e)(3), there is no specific frequency limit for refinancing. Each transaction must independently demonstrate tangible net benefit. However, frequent refinancing without clear benefit could indicate predatory lending practices that violate the spirit of the rule.
Why This Is the Correct Answer
Under 12 CFR 1026.43(e)(3), there is no specific frequency limit for refinancing. Each transaction must independently demonstrate tangible net benefit. However, frequent refinancing without clear benefit could indicate predatory lending practices that violate the spirit of the rule.
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