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Mortgage Knowledgeeasy20% of exam

During a post-application update, the file reviewer encounters an Income Calculation Self Employed issue. Which response should confirm the rule-based response?

Correct Answer

D) Use CLTV when subordinate financing exists

LTV and DTI calculations support repayment and collateral analysis. The best answer is "Use CLTV when subordinate financing exists".

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
Use CLTV when subordinate financing exists

Why This Is the Correct Answer

LTV and DTI calculations support repayment and collateral analysis. The best answer is "Use CLTV when subordinate financing exists".

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