Borrowers also can request cancellation of the insurance when their loan-to-value ratios
have been reduced by 20%.
If my property hasn't appreciated since the last time it was financed, current loan-to-value ratios
are going to prevent any lender from lending me the full amount of the last mortgage," said Richard Pergolis, also a principal in Pergolis Swartz Associates.
Institutions' expected dollar losses are determined primarily by the distribution of loan-to-value ratios
within their mortgage portfolios: Higher ratios are associated with higher mortgage default probabilities and loss severity rates.
Examples of reasons for exclusion from Residential Funding's other programs include, but are not limited to, higher debt-to-income ratios or higher loan-to-value ratios
Thus, lenders will set higher interest rates on mortgages with high loan-to-value ratios
, or more often, they will require that boffowers in such cases purchase mortgage insurance, which also raises the cost of the loan to the borrower.
Mortgage loans underwritten pursuant to the Expanded Underwriting Guidelines may have higher loan-to-value ratios
, higher loan amounts, higher debt-to-income ratios and different documentation requirements than those associated with the Standard Underwriting Guidelines.
Although the HMDA date included information on applicant income, no information was collected on applicants' credit histories, loan-to-value ratios
, debt-to-income or so called obligation ratios, and other factors that lenders commonly consider when they make mortgage loan decisions.
7% of the mortgage loans were originated under other programs of Residential Funding that permit mortgage loans with loan-to-value ratios
in excess of 95%.
Mortgage loans underwritten pursuant to the expanded underwriting guidelines may have higher loan-to-value ratios
, higher loan amounts, higher debt-to-income ratios, and different documentation requirements than those associated with the standard underwriting guidelines.
00% of the mortgage loans that had loan-to-value ratios
at origination in excess of 80%.
23% of the mortgage loans with combined loan-to-value ratios
greater than 60% will have mortgage insurance policy from PMI Mortgage Insurance Co.
11% of the mortgage loans with combined loan-to-value ratios
greater than 80% will have mortgage insurance policies from PMI Mortgage Insurance Co.