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#2290211 - 10/27/23 06:29 PM Simultaneous Closings - 1st /2nd Mtge
Wonderofitall Offline
100 Club
Joined: Sep 2010
Posts: 207
Out West
For simultaneous loan closings where the same collateral is used for a 1st and 2nd mortgage, should the CLTV be the same for both loans, OR does each loan's CLTV stand on it's own?

Example - 1st Mtge. loan amount = $100,000; 2nd Mtge. loan amount = $50,000; Appraised value = $150,000.
CLTV for 1st Mtge. = 66.67% and 100% for 2nd Mtge. OR
CLTV for 1st Mtge. = 100% and CLTV for 2nd Mtge. = 100%.
You're never too old to learn something stupid.

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#2290212 - 10/27/23 06:36 PM Re: Simultaneous Closings - 1st /2nd Mtge Wonderofitall
raitchjay Offline
Power Poster
Joined: Oct 2009
Posts: 9,060
100% for both is the only way i can read that.

(24) Except for purchased covered loans, the ratio of the total amount of debt secured by the property to the value of the property relied on in making the credit decision.
I'm fixin' to fix that.

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