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During a disciplinary-risk review, an audit analyst identifies an issue involving LTV Ratio Calculations. Which response is most compliant?

Correct Answer

D) Include monthly obligations in the DTI analysis

LTV and DTI calculations support repayment and collateral analysis. The best answer is "Include monthly obligations in the DTI analysis".

Answer Options
A
Apply a different loan-program rule without checking the file facts.
B
Ignore product, occupancy, LTV, or eligibility limits because the borrower prefers the loan.
C
Use the same treatment for all mortgage products without comparing program requirements.
D
Include monthly obligations in the DTI analysis

Why This Is the Correct Answer

LTV and DTI calculations support repayment and collateral analysis. The best answer is "Include monthly obligations in the DTI analysis".

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