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New Mexico Tangible Net Benefit Worksheet

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					                          TANGIBLE NET BENEFIT WORKSHEET
Each borrower must sign and receive a copy of this form at or before the loan closing for a refinancing of an
existing loan with a new mortgage loan. The original of this form must be retained in the lender’s loan file.

The following worksheet must be used in the determination of a borrower’s tangible net benefit as the benefit relates
directly to the new loan extended. Additional information may be provided on supplemental sheets or on the reverse if
the fields below are insufficient.

Was the previous loan provided by the lender or a related entity or affiliate of the lender? _____YES     _____NO
If No, the lender is not required to fill in the following fields pertaining to the previous loan: Loan to Value, Debt to
Income Level, and Loan Purpose.
If Loan Amount of previous loan is unknown, you may substitute with the Loan Payoff as long as it is clearly identified
as such.

Loan Originator/Processor:               ___________________________________________________________

Borrower Name(s):                        ___________________________________________________________
                                         ___________________________________________________________
                                         ___________________________________________________________
                                         ___________________________________________________________

Property Address:                        ___________________________________________________________

Loan Number:                             ___________________________________________________________

                                           LOAN INFORMATION
                                               NEW LOAN                                PREVIOUS LOAN
   Loan Date
   Loan Amount                       $                                          $
   Loan Term (months)
                                                    Fixed Rate                                 Fixed Rate
   Type of Loan
   (Check One)                                      Adjustable Rate                            Adjustable Rate

                                                    Balloon                                    Balloon
   Loan Rate                                  %                                          %
   Payment Amount                    $                                          $
   Prepayment Penalty
   Provision
   Loan To Value (if
   applicable)
   Debt to Income Level
   (if applicable)
   Loan Purpose (if
   applicable)
   Must be specific and
   relate to distribution
   of loan proceeds.
Revised: 6/8/10
LOAN ORIGINATOR TO COMPLETE:

The borrower will receive the following described tangible, net benefit through a refinancing of an existing loan
(please check every benefit that applies):

         The borrower will receive cash-out from the new loan to pay necessary expenses. He/She will use the
         proceeds of his/her new loan towards the following (please check all that apply):

             Medical expenses                    Other: ____________________________________
             Education expenses                  Other: ____________________________________
             Home improvement                    Other: ____________________________________

         Obtaining a lower interest rate with the same or reduced term as the original loan.
         Obtaining a lower monthly payment with the same or reduced term as the original loan.
         Obtaining a shorter loan term with the same or reduced interest rate as the original loan.
         Consolidating other high rate loans and debts into a single low rate loan. Will the new total monthly
         payment be lower than the total of all monthly obligations being financed, taking into account points and
         fees?______________________________________________________________________
         Making the balloon payment on an existing mortgage loan.
         Avoiding foreclosure under the terms of an existing mortgage loan.
         Converting from an adjustable rate to a fixed interest rate. Does the borrower regard this as a financial
         benefit?____________________________________________________________________
         Ability to remove mortgage insurance by lowering loan-to-value (LTV).
         Other (please specify): ________________________________________________________
         __________________________________________________________________________


Signature:        _________________________________________ Date: ______________________________

Print:            _________________________________________

Approved By:            ___________________________________
                        Manager/Officer

Print:                  ___________________________________




Revised: 6/8/10
BORROWER CERTIFICATION:

I understand that my lender must show that I have received a reasonable, tangible net benefit by refinancing this
loan. I affirm that the tangible net benefit of my new loan has been explained. Finally, I understand and
confirm the benefit.


Borrower:         _________________________________________ Date:             _____________________________

Borrower:         _________________________________________ Date:             _____________________________

Borrower:         _________________________________________ Date:             _____________________________

Borrower:         _________________________________________ Date:             _____________________________


                            TANGIBLE NET BENEFIT EXAMPLES


        In order for the loan to be considered a tangible net benefit to the borrower any of two of the following
        factors must apply:



        1. Paying medical expenses.

        2. Paying education expenses.

        3. Paying for home improvements.

        4. Obtaining a lower interest rate with the same or reduced term as the original loan.

        5. Obtaining a lower monthly payment with the same or reduced term as the original loan.

        6. Obtaining a shorter loan term with the same or reduced interest rate as the original loan.

        7. Consolidating other high rate loans into a single low rate loan.

        8. Avoiding foreclosure under the terms of an existing mortgage loan.

        9. Making the balloon payment on an existing mortgage loan.

        10. Converting from an adjustable rate to a fixed interest rate.

        11. Ability to remove mortgage insurance by lowering loan-to-value (LTV).




Revised: 6/8/10

				
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