Tafolla, however, found a loophole in Bank of America and “exploited the hell out of it.” That loophole allowed him to funnel roughly $5,000 to each of more than 200 families – until the bank caught on and forced him out.
Now Tafolla is challenging the system again. His step-down refinance model helps homeowners lower costs without hidden fees, or the long-term debt traps banks depend on. Instead of resetting mortgage terms to benefit lenders, his approach builds real wealth for borrowers. He’s not playing by the industry’s rules – he’s rebelling against them.
Reinventing the game with the step-down refinance
Tafolla’s latest innovation flips the script on refinancing: the step-down refinance.
“Initially it happened when the market was slower,” he said. “[It was] marry the house, date the rate. The rate was really high, and it was like, hey, let’s try to find some kind of reprieve for people.”
The idea is simple but powerful. Rather than chasing a perfect rate and paying hefty fees every time, borrowers refinance multiple times as rates drop. The result? Clients save money in real time without taking a financial hit.