What loans are now subject to the tangible net benefit test set forth in the Bureaus’ tangible net benefit rule?
The tangible net benefit test applies to higher priced mortgage loans, not all residential mortgage loans. Higher priced mortgage loans include nontraditional mortgage loans, rate spread home loans and high-rate high-fee loans. Nontraditional mortgage loans are defined as those that allow a borrower to defer repayment of principal or interest.
Related Questions
- Does the tangible net benefit rule require creditors to determine a payment for the principal loan amount only, and then add the 3-year fee amortization amount?
- Does the Tangible Net Benefit rule apply only to loan applications received after the effective date of the Act and rule (January 1, 2008)?
- What loans are now subject to the tangible net benefit test set forth in the Bureaus’ tangible net benefit/ability to pay rule?
