what is hcltv
For first mortgage loans that are subject to subordinate financing, the lender must calculate the LTV ratio and the CLTV ratio. (For first mortgage loans that are subject to a HELOC, see B2-1.1-03, Home Equity Combined Loan-to-Value (HCLTV) Ratios.) The CLTV ratio is determined by dividing the sum of the items listed below by the lesser of the sales price or the appraised value of the property. the original loan amount of the first mortgage,