Real estate math and exam guide
Loan-to-value: choose the debt, the value and the date
A buyer puts 20% of the price down, yet the loan can exceed 80% of the appraised value. That is not a contradiction when the two calculations use different bases. Label the debt and value before you divide, then check which ratio the question actually asks for.
Last reviewed:
The short answer
LTV = loan amount ÷ required property value × 100. Maximum loan = required value × the stated decimal LTV limit. Required value = loan ÷ decimal LTV. For an ordinary purchase under the identified Fannie Mae rule, use the lower of price or current appraised value; other transactions have their own requirements. CLTV adds the applicable subordinate balances, while HCLTV accounts for the applicable full HELOC exposure. A ratio is one calculation, not a loan approval or an automatic mortgage-insurance cancellation.
Reviewed October 27, 2026. PSI names LTV in national XI.B.3, Real Estate Calculations. The whole broker calculations domain has seven scored questions, without a guaranteed LTV quota. These original examples supply their own ratios and amounts. Follow the stated transaction and rounding instructions; a Fannie Mae delivery convention is different from ordinary classroom rounding and does not govern every mortgage.
Use the formula only after labelling its inputs
- Identify the requested result. LTV is a percentage; maximum loan and required value are dollar amounts. To find the loan, multiply value by the decimal ratio. To find value, divide the loan by the decimal ratio. The reverse calculation requires a valid nonzero divisor.
- Name the debt and its date. A new-loan calculation can use the original note amount; a requested current ratio uses the current principal balance. A refinance exercise uses its specified new loan, not automatically the old payoff. A monthly payment is not a principal balance. Include financed amounts when the applicable definition requires them, without adding an amount already included in the supplied total.
- Name the value rule. A simple exercise may expressly provide its denominator. The identified general Fannie Mae purchase calculation uses the lower of sales price or current appraised value; its general refinance calculation uses current appraised value. Special transactions can differ. Do not replace the required denominator with whichever number gives a more convenient ratio.
- Keep price funding separate from collateral value. Price minus the stated purchase financing gives the buyer’s price contribution in the supplied simple setup. It is not necessarily the property’s dollar equity or 100% minus an LTV based on a lower appraisal. An earnest-money deposit can reduce cash still due while leaving the total price contribution unchanged. Closing costs and credits require their own ledger.
- Build the combined numerator once. Under the identified general Fannie Mae definitions, CLTV combines the original first loan, drawn HELOC balances and unpaid closed-end subordinate balances. HCLTV uses the applicable full HELOC exposure instead of adding both the full line and the same draw. A line’s unused capacity is different from debt currently owed.
- Use actual current debt for a current equity exercise. Subtract all stated current secured balances from the stated current value. If debt exceeds value, negative equity and a ratio above 100% can be mathematically correct. An unused credit line does not, by itself, reduce this current-balance equity figure, although it can affect the requested exposure ratio.
- Distinguish an exact ceiling from a rounding instruction. Keep precision during the math, and follow the final instruction. A classroom answer to two decimals and a particular delivery ratio can differ. Do not round a requested loan upward past an exact mathematical ceiling merely because it is close, or treat a rounded ratio as a complete approval decision.
- Stop at the result the facts support. A maximum LTV stated in an exercise is a ratio limit, not a promise that income, credit, assets, reserves, property, documentation or insurance requirements are met. Particular mortgage-insurance rules can use different definitions and timing. An 80% result does not automatically end every insurance charge.
| Find | Formula or numerator | Safeguard |
|---|---|---|
| LTV | Specified loan ÷ required value × 100 | Debt over property |
| Maximum loan | Required value × decimal limit | A ratio ceiling alone is not approval |
| Required value | Loan ÷ decimal LTV | Do not multiply the loan by the ratio |
| Simple buyer price contribution | Price − stated purchase financing | Deposit affects remaining funds, not this total |
| Current equity | Current value − all stated current secured balances | Unused line capacity is not current debt |
| General CLTV numerator | Original first loan + HELOC drawn debt + closed-end subordinate UPBs | Apply the stated definition and special rules |
| General HCLTV numerator | Original first loan + applicable full HELOC exposure + closed-end subordinate UPBs | Do not also add the same HELOC draw |
| Current LTV | Current first balance ÷ current value × 100 | Match the dates and requested debt |
The distinctions that matter
| Distinction | How it works | What to notice |
|---|---|---|
| LTV and maximum loan | One is a calculated ratio; the other is the dollar ceiling under a supplied limit. | Divide for the ratio; multiply for the maximum loan. |
| Loan and value | Debt belongs in the numerator; the required property base belongs in the denominator. | Do not turn loan over value upside down. |
| Price contribution and equity | Cash or other supplied buyer funding toward price differs from value remaining after current liens. | An above-appraisal price can make these amounts differ. |
| Down payment and remaining cash due | The total price contribution differs from the amount still needed after a credited deposit. | Do not subtract earnest money twice. |
| Original and current LTV | Different snapshots use the specified debt and value dates. | Match the requested comparison. |
| LTV and CLTV | The first-loan ratio differs from the defined combination of secured loans. | Subordinate debt matters when the combined measure is requested. |
| CLTV and HCLTV | Drawn HELOC debt and the applicable full credit exposure can produce different combined ratios. | Replace the draw with the required exposure; do not add both. |
| Unused credit and current debt | A credit limit is potential access, not necessarily an amount already borrowed. | Do not subtract unused capacity as though it were a current balance. |
| Exam rounding and delivery rounding | A mathematical presentation instruction differs from a particular program’s reporting method. | State the method rather than implying all lenders round alike. |
| LTV and underwriting | A collateral ratio is one input into the credit decision. | A low ratio is not guaranteed approval. |
Work through the facts
Calculate LTV in the correct direction
A property’s required value is $400,000 and the specified loan is $340,000. Find LTV.
- $340,000 ÷ $400,000 = 0.85.
- 0.85 × 100 = 85%.
Answer: LTV is 85%. Value divided by debt would answer a different question.
Apply the expressly required lower value
Price is $425,000, current appraisal is $410,000 and the loan is $328,000. The exercise requires the lower purchase value.
- The required base is $410,000.
- $328,000 ÷ $410,000 = 0.80.
Answer: The requested LTV is 80%, even though debt divided by the price would be lower. This does not establish every loan condition.
Find a maximum loan
Eligible value is $460,000 and the exercise’s exact maximum LTV is 75%. No other loan cap changes this calculation.
- 75% = 0.75.
- $460,000 × 0.75 = $345,000.
Answer: The ratio-based maximum loan is $345,000. Other underwriting limits can still be more restrictive.
Recover the required property value
A $288,000 loan represents 80% LTV. Find the value used.
- Value = $288,000 ÷ 0.80 = $360,000.
- Check: $360,000 × 0.80 = $288,000.
Answer: The required value is $360,000. This algebra is not a request to make an appraiser reach that number.
Calculate the effect of a low appraisal on funding
Price is $500,000 and appraisal is $480,000. The supplied program permits no more than 80% of the lower value, with one purchase loan and no financed fees. The buyer had planned on a $400,000 loan. Ignore closing costs, deposits and other credits.
- The ratio-based maximum is $480,000 × 0.80 = $384,000.
- Price funds needed are $500,000 − $384,000 = $116,000.
- Compared with the planned $100,000 price contribution, the extra amount is $16,000.
Answer: The maximum loan is $384,000 and price funds are $116,000. The appraisal shortfall is $20,000, but this exercise’s reduction in the loan is $16,000. The calculation does not require an actual buyer to proceed or override a contract contingency.
Compare three ratios without double counting
At the stated purchase snapshot, the required value is $400,000, the original and current first balance is $280,000, the closed-end second’s unpaid balance is $40,000, and a HELOC has $10,000 drawn on a $30,000 full limit. Use the identified general definitions; report exact mathematical percentages.
- LTV: $280,000 ÷ $400,000 = 70%.
- CLTV: ($280,000 + $40,000 + $10,000) ÷ $400,000 = 82.5%.
- HCLTV: ($280,000 + $40,000 + $30,000) ÷ $400,000 = 87.5%.
Answer: The requested mathematical ratios are 70%, 82.5% and 87.5%. Current balance-based equity is $70,000, because only $330,000 is currently owed. Adding the $10,000 draw to the full $30,000 line again would double count it.
Match current and original snapshots
The original loan was $300,000 against a $400,000 value. Now the sole current secured balance is $260,000 and current value is $500,000. The exercise requests the current ratio and current equity.
- Original LTV was $300,000 ÷ $400,000 = 75%.
- Current LTV is $260,000 ÷ $500,000 = 52%.
- Current equity is $500,000 − $260,000 = $240,000.
Answer: The current results are 52% LTV and $240,000 equity. Mixing the original $300,000 with current value would produce an unrequested snapshot.
Include a financed amount only once
An exercise defines the loan base before financed mortgage insurance as $190,000 and the financed premium as $5,000. It expressly requires the total funded principal in the numerator, against a $200,000 value. Assume no other financed amount.
- Total funded debt is $190,000 + $5,000 = $195,000.
- $195,000 ÷ $200,000 × 100 = 97.5%.
Answer: The stipulated mathematical ratio is 97.5%. If the question had already supplied $195,000 as the total including the premium, do not add $5,000 again. This example does not approve the financing or determine required insurance coverage.
A permanently reduced HELOC cannot hide an outstanding balance
Use the identified general Fannie Mae modified-line rule, with appropriate permanent-modification documentation. Required value is $400,000, original first debt is $280,000, and unpaid closed-end second debt is $40,000. The HELOC limit is permanently reduced to $20,000, but its outstanding principal is $25,000. Report exact mathematical percentages before delivery rounding.
- The outstanding $25,000 exceeds the modified $20,000 amount, so the HELOC amount used for HCLTV is $25,000.
- HCLTV: ($280,000 + $40,000 + $25,000) ÷ $400,000 = 86.25%.
- CLTV uses the same drawn amount here and is also 86.25%.
Answer: Both mathematical combined ratios are 86.25%. Using only the reduced $20,000 would incorrectly understate the required exposure. If the draw instead were $10,000 with the documented $20,000 modified line, HCLTV would use $20,000 and equal 85%, while CLTV would be 82.5%.
Keep delivery rounding in its stated order
A question expressly asks for the identified Fannie Mae illustrated delivery method, without an additional conservative policy. It supplies raw ratios of 80.009% and 94.01%. Apply truncation to two decimal places and then rounding up to a whole percent.
- 80.009% is truncated to 80.00%, then becomes 80% under that illustrated process.
- 94.01% remains 94.01% after truncation, then becomes 95%.
- Do not round 80.009% to 80.01% before the upward whole-percent step.
Answer: The stated process gives 80% and 95%. The guide permits lender methodology producing the same or a higher ratio. These delivery results are not a universal classroom rounding method or approval of a loan exceeding an exact mathematical cap.
Mistakes to avoid
- Invert the fraction. Divide the specified debt by the required value.
- Use price in every case. Apply the question’s actual denominator rule.
- Always use 100% minus LTV for the cash down-payment percentage. That shortcut requires matching bases and the supplied financing setup.
- Subtract earnest money from the total down payment. A credited deposit changes remaining funds, not the total price contribution.
- Use the old payoff as the new refinance loan. Use the original amount of the new loan when the refinance exercise calls for it.
- Use every mortgage’s original face amount in CLTV. The identified definition uses original first debt and the specified current subordinate amounts.
- Add both a HELOC’s full limit and the same drawn balance. Use the requested exposure measure once.
- Treat an unused credit line as money already owed. Keep potential exposure separate from current debt and equity.
- Reject an LTV over 100% as impossible. Debt can exceed the specified value; eligibility is a separate issue.
- Assume one program’s rounding governs every exam question. Keep delivery rules separate from the exercise’s math instruction.
- A calculated 80% always cancels mortgage insurance. Apply the actual insurance type, coverage and cancellation rules.
- A maximum-ratio calculation guarantees the mortgage. The complete credit and program decision remains separate.
Check your understanding
These are original teaching questions, not recalled or predicted PSI questions. Answer first, then explain why the other choices fail.
1. A $315,000 loan uses a $420,000 property base. What is LTV?
- 70%
- 133.33%
- 80%
- 75%
Show answer and explanation
Answer: D. 75%
Divide $315,000 by $420,000 and multiply by 100. The result is 75%.
2. Value is $380,000 and the stated maximum LTV is 85%. What is the ratio-based maximum loan?
- $323,000
- $304,000
- $57,000
- $447,058.82
Show answer and explanation
Answer: A. $323,000
$380,000 × 0.85 = $323,000. Other credit conditions are not decided by that multiplication.
3. A $270,000 loan represents 90% LTV. What is the required value?
- $300,000
- $297,000
- $243,000
- $30,000
Show answer and explanation
Answer: A. $300,000
Divide the loan by 0.90, giving $300,000. Multiplication would not recover the missing denominator.
4. The exercise requires the lower of a $350,000 price and $340,000 appraisal. Which denominator applies?
- $10,000
- The monthly payment
- $340,000
- $350,000
Show answer and explanation
Answer: C. $340,000
The stated lower-value rule selects $340,000. Use the required property base rather than the more favourable alternative.
5. In the $500,000-price, $480,000-appraisal case with an 80% lower-value limit, what is the maximum loan?
- $416,000
- $480,000
- $384,000
- $400,000
Show answer and explanation
Answer: C. $384,000
The eligible base is $480,000. Multiply by 0.80 for $384,000.
6. With that $384,000 loan and no other financing, how much of the $500,000 price must the buyer fund before costs and credits?
- $20,000
- $96,000
- $116,000
- $100,000
Show answer and explanation
Answer: C. $116,000
Subtract the loan from price: $500,000 − $384,000 = $116,000. This is not the complete cash-to-close ledger.
7. Compared with the originally planned $400,000 loan, how much additional buyer price funding follows from that limit?
- $16,000
- $4,000
- $116,000
- $20,000
Show answer and explanation
Answer: A. $16,000
The loan falls by $400,000 − $384,000 = $16,000. The difference between price and appraisal is a separate $20,000 figure.
8. At a $480,000 value and $384,000 sole secured balance, what is balance-based equity?
- $96,000
- $20,000
- $500,000
- $116,000
Show answer and explanation
Answer: A. $96,000
Value minus the stated secured balance is $96,000. It differs from the buyer’s $116,000 contribution toward an above-value $500,000 price.
9. For the combined-ratio example, first debt is $280,000 against $400,000. What is first-loan LTV?
- 70%
- 87.5%
- 80%
- 82.5%
Show answer and explanation
Answer: A. 70%
The LTV numerator is the first loan specified by the question. The other balances matter for the separately requested combined measures.
10. Add the $40,000 unpaid second and $10,000 drawn HELOC to that first loan. What is exact mathematical CLTV?
- 70%
- 87.5%
- 90%
- 82.5%
Show answer and explanation
Answer: D. 82.5%
The numerator is $330,000 and the base is $400,000. The exact ratio is 82.5%, before any separately required delivery presentation.
11. Use the $30,000 full HELOC line instead of the $10,000 draw, with the other balances unchanged. What is exact mathematical HCLTV?
- 90%
- 82.5%
- 80%
- 87.5%
Show answer and explanation
Answer: D. 87.5%
The required numerator is $350,000. Do not add the $10,000 draw again; the exact ratio is 87.5%.
12. How much is currently owed across those three secured balances at the supplied snapshot?
- $400,000
- $360,000
- $350,000
- $330,000
Show answer and explanation
Answer: D. $330,000
Current debt is $280,000 + $40,000 + $10,000 = $330,000. The unused portion of the line is exposure rather than a current balance.
13. Current first balance is $260,000 and current value is $500,000, with no other secured balances. What is current LTV?
- 75%
- 52%
- 60%
- 48%
Show answer and explanation
Answer: B. 52%
Use the current balance and current value: $260,000 ÷ $500,000 = 52%.
14. In that same current snapshot, what is current equity?
- $200,000
- $500,000
- $260,000
- $240,000
Show answer and explanation
Answer: D. $240,000
Subtract current secured debt from current value: $500,000 − $260,000 = $240,000.
15. A supplied numerator includes $190,000 base debt plus $5,000 financed insurance against $200,000. What is its mathematical ratio?
- 97.5%
- 100%
- 95%
- 2.5%
Show answer and explanation
Answer: A. 97.5%
Count the expressly included amounts once: $195,000 ÷ $200,000 = 97.5%. This is not approval of a financing arrangement.
16. A $330,000 sole balance is compared with a $300,000 current value. What follows mathematically?
- LTV is 110% and equity is negative $30,000
- The ratio must be an error
- LTV is 90% and equity is positive
- LTV is capped at 100% by arithmetic
Show answer and explanation
Answer: A. LTV is 110% and equity is negative $30,000
The debt exceeds value. $330,000 ÷ $300,000 = 110%, and $300,000 − $330,000 = −$30,000; no loan eligibility conclusion follows.
17. In the permanently modified-line case, the HELOC draw is $25,000 and modified limit is $20,000. With $280,000 first debt, $40,000 second and $400,000 value, what is exact HCLTV?
- 85%
- 82.5%
- 91.25%
- 86.25%
Show answer and explanation
Answer: D. 86.25%
The stated rule uses the outstanding $25,000 because it exceeds the documented modified amount. Combined exposure is $345,000, or 86.25%; HCLTV cannot be lower than CLTV.
18. Using only the illustrated truncate-then-round-up process stated in the question, how is raw 80.009% delivered?
- 79%
- 81%
- 80.01%
- 80%
Show answer and explanation
Answer: D. 80%
Truncate to two decimal places first: 80.00%. Rounding that result up to a whole percent gives 80%. The question excludes a separate more conservative policy.
19. The exact mathematical CLTV is 82.5%. What does the same stated delivery process produce?
- 83%
- 82%
- 85%
- 82.5%
Show answer and explanation
Answer: A. 83%
After truncation to 82.50%, round up to the whole percent 83%. The exact mathematical percentage and this delivery presentation are different requested results.
20. In the low-appraisal case, the buyer provides $116,000 toward a $500,000 price. What percentage of price is that, despite the separate 80% LTV?
- 20%
- 24.17%
- 23.2%
- 80%
Show answer and explanation
Answer: C. 23.2%
$116,000 ÷ $500,000 = 23.2%. The LTV denominator was $480,000, so subtracting that LTV from 100% would use a different base.
Common questions
What is the loan-to-value formula?
Specified loan ÷ required property value × 100. A $270,000 loan against a $360,000 base gives 75%. Keep loan over value, and identify whether the numerator is the original loan, current first balance or another expressly requested amount. A monthly payment is not the numerator.
How do I calculate the maximum loan or required value?
Maximum loan = value × the stated decimal LTV limit. Required value = loan ÷ decimal LTV. Thus $400,000 × 0.80 is a $320,000 ratio-based maximum, while $306,000 ÷ 0.85 recovers a $360,000 base. The reverse calculation requires a nonzero divisor; a value of zero also cannot support the ordinary LTV division.
Do I use price or appraised value?
Follow the supplied transaction definition. The identified general Fannie Mae purchase rule uses the lower of sales price or current appraised value; its general refinance rule uses current appraised value. Special products and transactions can differ. An exercise expressly naming a different mathematical base should not silently be rewritten as a particular program’s underwriting problem.
Is 80% LTV always a 20% down payment?
Only in the matching simple setup: the same price and value base, the stated purchase financing and no other financed amount changing the relationship. A low appraisal can produce 80% LTV even when the buyer must contribute more than 20% of the price. Subordinate financing also changes how much of the price the buyer must provide from other sources.
Does a low appraisal mean the buyer must bring the entire appraisal gap in extra cash?
Not automatically. Calculate the lender’s stated loan limit and compare it with the previously planned financing. In the worked case, a $20,000 price-appraisal difference reduces the 80% loan by $16,000. The buyer’s choices, available financing and contractual rights are separate; the math does not require proceeding, permit a higher loan or automatically cancel the agreement.
Does earnest money reduce the down payment?
It can satisfy part of the buyer’s total price contribution and reduce the remaining amount due. It does not reduce the total price-minus-financing figure in the simple setup. A complete cash-to-close calculation then accounts for other charges, financed items and permitted credits without counting the deposit twice.
What is CLTV?
Combined loan-to-value. Under the identified general Fannie Mae definition, its numerator includes the original first loan, the drawn HELOC principal and unpaid closed-end subordinate principal. Divide by the required property base. The first-loan ratio alone does not capture all that debt. Special transactions and definitions still need their own rules.
What is HCLTV, and why can it exceed CLTV?
It measures the applicable combined exposure using the full HELOC amount rather than only the draw, with the specified first loan and closed-end subordinate amounts. The unused part can make HCLTV higher. Do not add both the full line and its draw. Permanently modified lines have the specific balance protections discussed below; do not assume every temporary restriction changes the required exposure.
Can LTV exceed 100%?
Yes mathematically, when the specified loan exceeds the required value. Negative current balance-based equity can accompany it. Confirm the inputs instead of automatically changing the answer to 100%. Whether any particular financing is permitted is a separate program and credit question.
How is equity different from LTV or HCLTV?
Current dollar equity in these exercises is current value minus the stated current secured balances. LTV is a ratio, and HCLTV can include unused exposure that is not yet debt. Do not treat 100% minus HCLTV as the current equity percentage merely because the numbers look complementary. Match the actual debt definition and date.
Which amount belongs in a refinance LTV?
Use the new loan and required refinance value for the origination calculation, including applicable financed items as directed. The old payoff may be one use of proceeds but is not automatically the amount of the new note. A requested current ratio is a different snapshot using the specified current balance and value.
Do I add financed mortgage insurance to the numerator?
Use the applicable ratio definition and avoid duplication. The identified Fannie Mae table separately addresses financed mortgage insurance. The exercise above expressly supplies $190,000 before a $5,000 financed premium, giving a $195,000 numerator. If a supplied total already includes the premium, adding it again is wrong. Eligibility and insurance coverage have additional rules; not every program uses the same treatment.
Does a low LTV guarantee approval or a particular interest rate?
No. The complete decision can depend on credit, verified repayment resources, reserves, occupancy, loan type, property, documentation, other ratios and applicable lender requirements. A stated ratio limit is only one requirement. A correct calculation is not a rate quote, and there is no universal 80% approval rule.
Does reaching 80% LTV automatically cancel mortgage insurance?
No. Identify the insurance type, applicable value definition, timing and cancellation rules. Covered borrower-paid PMI has different request and automatic-termination provisions, while lender-paid insurance and FHA mortgage insurance need their own treatment. A new current-value calculation alone does not establish cancellation. The linked PMI-versus-MIP guide explains that separate subject.
How does the identified Fannie Mae delivery rule round LTV?
The cited topic requires truncation to two decimal places, followed by rounding up to a whole percent, and applies that approach to CLTV and HCLTV as well. Under the illustrated process, 80.009% becomes 80.00% and then 80%; 94.01% becomes 95%. Lender systems must produce the same or a higher ratio. Keep this program rule separate from a classroom request for exact percentages or two-decimal ordinary rounding.
What happens when a HELOC is permanently reduced below the drawn balance?
Under the cited modified-line rule, use the outstanding principal if it exceeds the documented permanently modified amount; otherwise use the documented modified amount. The lender needs appropriate permanent-modification documentation. CLTV cannot exceed HCLTV under this rule. A temporary restriction or a borrower’s stated intention to borrow less does not establish those permanent-modification facts.
Why can the same loan have different LTV figures for different purposes?
Check the debt, value, date and purpose. Original-note qualification, a current-balance equity exercise and a mortgage-insurance determination are different questions. For example, the identified Fannie Mae insurance provision addresses unpaid principal when the loan is purchased or securitised, its stated value rules and alternative charter-compliant credit enhancement. That is not the same question as originating the loan or cancelling PMI later. Do not carry one definition into every calculation.
Are these official PSI questions or a current eligibility matrix?
No. These are original teaching questions using the named PSI calculation topic and identified primary sources. The page is not the complete Fannie Mae guide, every program’s value exceptions, a current maximum-ratio matrix or an actual loan approval. A topic’s older revision date can coexist with a current guide containing it; the October review date is not a claim that every rule was newly amended that month.
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Official sources and scope
Reviewed October 27, 2026. The evidence identifies the particular Fannie Mae topics and current CFPB explanation actually read, alongside explicit earlier primary readings for the limited insurance and underwriting comparisons. General mathematical examples and a program’s delivery method are labelled separately. This is not an audit of every product, value exception, eligibility matrix or actual loan file.
- PSI June 24, 2026: National XI.A.1 seller net and XI.A.2 buyer funds
- CFPB: loan-to-value and mortgage costs
- Fannie Mae B2-1.2-01: LTV definitions and delivery rounding
- Fannie Mae B2-1.2-02: combined loan-to-value
- Fannie Mae B2-1.2-03: full HELOC exposure and permanent modifications
- Fannie Mae B2-1.3-01: purchase eligibility and qualified exceptions
- Fannie Mae B7-1-01: insurance-purpose LTV and coverage conditions
- Fannie Mae B3-2-01: Desktop Underwriter and lender responsibilities
- 12 U.S.C. 4901: coverage, original value and payment history
- 12 U.S.C. 4902: cancellation, termination, modification and unearned premiums
- 12 U.S.C. 4905: separate lender-paid mortgage insurance treatment
This is exam preparation, not advice for a specific transaction. State law and the applicable facts control. Our editorial and corrections process explains how to report an issue.