Reporting Mortgage Loan To Value (LTV) StatisticsOnce the necessary mortgage loan servicing data is available, the investor runs a Loan To Value (LTV) report that generates LTV statistics for loans in their servicing portfolio by seller. Investor LTV reports vary depending on the reporting needs of the investor. The LTV report detailed in this article is intended to fulfill an investor requirement to report month end active servicing LTV distribution statistics by seller.
Creating the Report...
Report Seller LTV Distribution StatisticsThe following steps generate a report of the seller's active servicing LTV distribution. Prior to setting up the report the investor must determine the LTV Distribution reporting buckets (e.g. <=80%, > 95%). Each distribution bucket is then reported as a percentage of active servicing.
Step #1The seller's total active servicing is calculated.
The seller's total active servicing is equal to the sum of the principal amount of all loans in the investor's servicing portfolio, for the seller, where the loan's status is Active, Repurchase, Bankruptcy, Foreclosure, Prepayment or Early Payoff for the period calculated. Typically, the only loans excluded by an investor when calculating the total active servicing for a seller are those loans that have been sold servicing released by the investor or loans that are still on the investor's servicing system but considered paid in full and not in a prepayment or early payoff status.
Step #2The seller's active servicing by LTV ratio is calculated.
The seller's active servicing by LTV ratio is equal to:
The seller's active servicing by LTV is equal to the sum of the principal amount of all loans in the investor's servicing portfolio, for the seller, by the loan's LTV ratio where the loan is in an active status.
Step #3The seller's active servicing LTV percentages by LTV reporting bucket are calculated.
In this step you are retrieving the seller's active servicing total from Step #1 and comparing it to the active servicing totals with LTV ratios, from Step #2, with a LTV value less than or equal to the LTV bucket range that you want to report. The resulting records are used to report the percentage of loans, by seller, with a LTV less than or equal to the bucket range you are reporting.
Step #4Repeat Step #3 to create additional LTV distribution buckets.
A Seller Loan To Value (LTV) report similar to the Sample Mortgage Loan To Value (LTV) Report in the Sample Loan To Value (LTV) Report section of this article can be generated by the investor for distribution to the seller.
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