Ginnie Mae is clarifying its requirements on APM 10-16, dated Oct. 22, 2010, with respect to reporting the loan-to-value (LTV) ratio at issuance. According to Ginnie Mae, the LTV must be calculated based on the value of the property at the time the loan was originated. Issuers may use the appraised value, estimated value or purchase price of the property to calculate the LTV. In instances where the agency insuring or guaranteeing the loan does not require an appraisal, such as Federal Housing Administration (FHA) streamline refinances and U.S. Department of Veterans Affairs (VA) Interest Rate Reduction Loans, issuers may enter “0” in the LTV data field. Failure to enter a value in the LTV data field will result in a failed pool. For more information, visit www.ginniemae.gov.
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