The Net Tangible Benefits Test

We ensure that any loan transaction with us gives our customers a "reasonable, tangible net benefit."

HSBC Credit Center employs a stringent tangible benefits test on all mortgage loans. The actual components involved in the test are clearly disclosed. All new company real estate loans must meet at least two of the following five statements. Refinancing of existing HSBC Credit Center loans must meet one of the standards.

1. New money or debt consolidation to the borrower equivalent to ten percent or $10,000 above the current first mortgage
2. A savings of $100 or more in current monthly payments
3. An aggregate rate reduction
4. A term reduction
5. Consolidation of delinquent debts

We will not make a loan if it does not meet the criteria of the tangible benefits test.

Moreover, if an HSBC Credit Center loan is 350 basis points or higher than the mortgage being refinanced, the benefits test requires a monthly savings of at least $300, plus one of the other tangible benefit requirements.