Who determines the net tangible benefit on a loan?

The net tangible benefit on a loan is determined by the lender. The lender evaluates the financial implications of a loan for the borrower, including aspects like interest rates, fees, and any potential savings compared to the existing loan. This assessment is crucial for ensuring that the borrower receives a meaningful benefit from refinancing or obtaining a new loan. The lender's decision takes into account various factors, such as the borrower's financial situation and the terms of the new loan.

The processor, while instrumental in gathering and organizing loan documentation, typically does not make final decisions regarding the net tangible benefit. The underwriter assesses the risk associated with the loan based on the borrower's creditworthiness and the loan's terms but does not primarily focus on determining the tangible benefit. Similarly, a banker may facilitate the loan process but is not responsible for calculating the net tangible benefit in the same manner as the lender. Thus, it is the lender's responsibility to evaluate and determine the overall net tangible benefit of the loan for the borrower.