This has likely been asked before, probably many times, and I apologize for the repeat. I attempted to do a search of the threads first, but was not successful. In any case, as an example, Loan # 1 was closed without an LTV exception. Later Loan # 2 using the same property was closed as a 2nd deed of trust. When calculating the LTV exception, can you use just the balance of Loan # 2 or must the balance of Loan # 1 be included as well?
Assuming that only Loan # 2 must be included, then would it have been logical and permissible [if need for additional funds was known at the time] to have closed 2 loans on the same day, the larger one for which there would not have been the LTV exception, and the second one for which there would be...so that the amount reported as exception would not be one larger balance, but only the part that "tipped the scales," so to speak?
Thank you for your assistance and input.
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