All,

I cannot seem to find the language/guidance on how to code the CLTV for FHA loans? Due to the final loan amount including the FHA premium amount being added on to the loan it causes the CLTV value to produce a Q617 error. Do I just report the updated CLTV, okay the quality error with comment, or something completely different?

I have the exact same question. Anyone help?

Why would the FHA premium impact this? Sorry, I do not understand.

The loan amount on an FHA loan includes the mortgage insurance premium (MIP). The LTV field does not include MIP therefore causing a Q617 error. Example: loan amount $292,000 + MIP of $5,000 = $297,000 loan amount reported. Value of property = $303,000. If the LTV is calculated manually, 297,000/303,000 = 98.02% but the LTV field would use $292,000 as the loan amount which = 96.369%.

Sounds like a vendor issue. YOu don't have a way to override the value? [mine does is why I ask] You need to be using whatever CLTV is used in the credit decision, whatever that may be, so you really need a way to customize that as needed to give a true picture of the underwriting numbers.

OK - I apparently am not that great at HMDA - but what LTV field.

Thanks for clarify RR

You're to use the LTV that is relied on in the credit decision, so if you don't include the MIP for the LTV for decisioning, then you just ok the error. Quality edits aren't violations.