Fannie Mae Single Family Selling Guide B2-1.2-02, Combined Loan-to-Value (CLTV) Ratios (12/04/2018)
Fannie Mae Single Family Selling Guide topic B2-1.2-02 (Combined Loan-to-Value (CLTV) Ratios). Gap-fill (verbatim, ID-diff).
Verbatim regulatory text
Verbatim provisions from Fannie Mae Single Family Selling Guide B2-1.2-02, Combined Loan-to-Value (CLTV) Ratios (12/04/2018) — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
Fannie Mae Single Family Selling Guide B2-1.2-02
Introduction This topic contains information on CLTV ratios, including: Calculation of the CLTV Ratio Loan-Level Price Adjustments Calculation of the CLTV Ratio For first mortgage loans that are subject to subordinate financing, the lender must calculate the LTV ratio and the CLTV ratio. For first mortgage loans that are subject to a HELOC, see
Fannie Mae Single Family Selling Guide B2-1.2-02
Home Equity Combined Loan-to-Value (HCLTV) Ratios. For all other subordinate liens, see
Fannie Mae Single Family Selling Guide B2-1.2-02
Subordinate Financing for additional information. The CLTV ratio is determined by dividing the sum of the items listed below by the lesser of the sales price or the appraised value of the property. the original loan amount of the first mortgage, the drawn portion (outstanding principal balance) of a HELOC, and the unpaid principal balance of all closed-end subordinate financing. (With a closed-end loan, a borrower draws down all funds on day one and may not make any payment plan changes or access any paid-down
Fannie Mae Single Family Selling Guide B2-1.2-02
, 2026 164 principal once the loan is closed.) Note: For each subordinate liability, in order for the lender to accurately calculate the CLTV ratio for eligibility and underwriting purposes, the lender must determine the drawn portion of all HELOCs, if applicable, and the unpaid principal balance for all closed-end subordinate financing. If any subordinate financing is not shown on a credit report, the lender must obtain documentation from the borrower or creditor. If the borrower discloses, or the lender discovers, new (or increased) subordinate financing after the underwriting decision has been made, up to and concurrent with closing, the lender must re-underwrite the mortgage loan. (See
Fannie Mae Single Family Selling Guide B2-1.2-02
Debt-to-Income Ratios, for additional information.) Note: The CLTV ratio calculation may differ for certain mortgage loans. For details on these differences, see
Fannie Mae Single Family Selling Guide B2-1.2-02
Conversion of Construction-to-Permanent Financing: Single-Closing Transactions;
Fannie Mae Single Family Selling Guide B2-1.2-02
Loans with Resale Restrictions: Eligibility, Collateral and Delivery Requirements; and
Fannie Mae Single Family Selling Guide B2-1.2-02
Shared Equity Transactions: Eligibility, Underwriting and Collateral Requirements. Refer to the Eligibility Matrix for allowable CLTV ratios. Loan-Level Price Adjustments An LLPA applies to certain mortgages with subordinate financing. These LLPAs are in addition to any other price adjustments that are otherwise applicable to the particular transaction. See the Loan-Level Price Adjustment (LLPA) Matrix. Recent Related Announcements There are no recently issued Announcements related to this topic.