What is the required completion timeline for a Tangible Net Benefit Worksheet for a refinancing loan?

The required completion timeline for a Tangible Net Benefit Worksheet for a refinancing loan is 24 months. This timeframe is established to ensure that the borrower gains a significant and measurable financial benefit from the refinance compared to their current loan. The primary purpose of the Tangible Net Benefit Worksheet is to evaluate whether a refinance is advantageous for the borrower and it typically focuses on aspects like savings in monthly payments, lower interest rates, or reduction in loan terms. Adhering to this 24-month guideline is crucial for Loan Originators to comply with regulatory requirements and to protect the interests of consumers by ensuring that they are not only swapping out loans without clear financial gains. This understanding also highlights the importance of evaluating loans beyond just interest rates, considering the overall financial implications over the established period.