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 or sales price whichever is less. In no case may the final LTV ratio exceed 49.99% of the appraised value or sales price of the property whichever is less.

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.