Posted By: Yogi Bear
Commercial/Business - CLTV and cross collateral - 02/12/22 08:42 PM
This is our first year reporting all the extended data. We are struggling with our commercial loans and CLTV.
Example: The approval will state a signal "dwelling" as collateral. The rub is that on the collateral analysis, all of the collateral the borrower has with us is listed and the Gross total loan amount is recommended based 75% of the total collateral (real property and non real property).
The Notes all have cross collateral langauge in them.
We have been looking at this as we need to use all the collateral on the analysis and not just the what we would call direct collateral described on the approval.
Are we correct in looking at the total collateral for each loan that is reportable or just the "direct" subject property?
Example: The approval will state a signal "dwelling" as collateral. The rub is that on the collateral analysis, all of the collateral the borrower has with us is listed and the Gross total loan amount is recommended based 75% of the total collateral (real property and non real property).
The Notes all have cross collateral langauge in them.
We have been looking at this as we need to use all the collateral on the analysis and not just the what we would call direct collateral described on the approval.
Are we correct in looking at the total collateral for each loan that is reportable or just the "direct" subject property?