When we report the CLTV on a loan where we have taken a 2nd DOT, and we have the 1st DOT, do we add the 1st and 2nd loan amounts, then divide by the appraisal for the collateral, or figure each one individually?

Thanks.

In short, add the 2 loans together and divide by the appraised value. That gives you the *combined* LTV which is what you're using to decision the loan(s).

So to make sure I'm understanding this correctly, when I report the second loan(which is where we are taking the 2nd DOT) I would add the first loan amount, and then add this second loan amount together to then divide by the appraisal? This is what we have been doing, but I was unsure do to doing a scrub before my submission. Thank you.

That's my understanding and how we do it at my shop, yes.

Ok, thank you.