Which of the following refinance scenarios is EXEMPT from the tangible net benefit requirement?
Correct Answer
C) A refinance where the creditor did not originate the existing mortgage
The tangible net benefit requirement only applies when the same creditor or an affiliate originated the existing mortgage being refinanced. If a different, unaffiliated creditor originated the existing loan, the requirement does not apply.
Why This Is the Correct Answer
The tangible net benefit requirement only applies when the same creditor or an affiliate originated the existing mortgage being refinanced. If a different, unaffiliated creditor originated the existing loan, the requirement does not apply.
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