What’s The Net Tangible Benefit Test?
Carrington Quoted in MortgageOrb.com Piece Addressing Churning
The net tangible benefit test asks a tough question: Should borrowers be allowed to refinance even when it’s not in their best interest? Writer Peter Miller explores the obvious answer, no, in this article published on Sept. 25 in MortgageOrb.com, in which Carrington EVP Rick Sharga is quoted.
In what is essentially a bid against churning − a practice that involves originating multiple loans to one borrower over a short time that produce little if any real benefit for the homeowner − the new standards will effectively prevent serial refinancing, something good for borrowers and mortgage investors, and something long overdue.
Read it here.