Posted By: complofcr
Supervisory Guidelines - 11/18/19 06:36 PM
We have a $170,000 loan that was to purchase a home for $150,000 and $20,000 additional money for renovations of the home. The loan is secured by the home being purchased and additional collateral in lieu of a down payment. When calculating the LTV for supervisory guidelines, I understood the guidance to read that you would use the lesser of the cost or appraised value and anything over 90% for residential gets reported to the board. In this situation we did finance over 100% of the cost of the home but with the additional collateral and appraised value of the home after renovations, we are within the 90% LTV. How would I calculate the LTV for the supervisory guidelines report that goes to the board? I may have missed this in this guidance https://www.fdic.gov/regulations/laws/rules/2000-8700.html Thanks!