Calculation of the LTV Ratio

The maximum allowable LTV ratio for a Homium mortgage is based on the loan amount requested divided by the value of the property. In no case may the final LTV ratio exceed 49.99% of the appraised value of the property.

The result of these calculations must be truncated (shortened) to two decimal places, then rounded up to the nearest whole percent. For example:

• 44.01% will be calculated as 45%, and

• 50.001% will be delivered as 50%.

The rounding rules noted above also apply to the CLTV and HCLTV ratio calculations. Originators systems must contain rounding methodology that results in the same or a higher LTV ratio.