Phil Grossfield's Blog


NTB; Step Off That Ledge

My Schedule…and a Little Extra:   Tonight’s the big night…whoever wins the game tonight wins the series, unless Oklahoma wins tonight in which case Miami still wins the series.   |   I’ve received a fair amount of questions about Net Tangible Benefits or NTB.  The simple rule is that a refinance must improve the borrower’s rate by at least 0.250% or the NTB test fails in which case the submission would be rejected.  Exceptions may be possible.  For example, if the borrower had a rate of 3.99% and the NTB would result in 0.240% improvement to the rate, we could make an exception for this.  Although I have no clarification just yet on other possible exceptions, I’m sure an argument could be made to justify the benefit.  Of course, going from an ARM to fixed rate is an acceptable NTB without the 0.250%.  But if you have a scenario that you unsure about, run it by me and we’ll get it figured out.  Let me know if you have any questions, okay?

My Mystery Lyric:  I wish you would step back from that ledge my friend — You could cut ties with all the lies that you’ve been living in — And if you do not want to see me again — I would understand…I would understand  — Answer

My Market Watch:  Stocks opened better today to take some gains from yesterday’s losses.  As a result, rates are a little worse than yesterday.  Today there is little news.  Disclaimer

My Schedule:  I have one appointment today at 11a so I will be unavailable until about 12p.


For a Clean Underwriting Decision Resulting in Happiness and Adulation – Read Me
For a Long List of Conditions, a Huge Hassle, and Massive Frustration –
Ignore Me

Net Tangible Benefit:  0.250%:  in order to refinance, a borrower’s rate must improve by 0.250% to meet the NTB test.  Let me know if you have any questions, okay? If you have a rate of 3.99% and the refi would result in a rate improvement of 0.240%, that is also acceptable.

New Procedures From Me Available Here:  MY PROCEDURES

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