Final answer:
To meet the presumption of compliance for an IRRRL, proof must be presented that there's a net tangible benefit for the borrower.
Step-by-step explanation:
In order to meet the presumption of compliance, Interest Rate Reduction Refinance Loans (IRRRLs) must have proof that there is a net tangible benefit to the borrower. This generally means that there must be documentation to show that the new loan provides a real financial advantage, such as a lower interest rate or reduced monthly payments. Specifically for a VA IRRRL, it also helps if there is evidence that the recoupment period for costs is reasonable and the overall costs of the loan are recouped over time through the savings generated by the new loan terms.