source:
  type: regulation
  id: fnma-sel-b2-1.2-03
  authority: Fannie Mae Single Family Selling Guide B2-1.2-03, Home Equity Combined Loan-to-Value (HCLTV) Ratios
    (02/23/2016)
  description: "Fannie Mae Single Family Selling Guide topic B2-1.2-03 (Home Equity Combined Loan-to-Value (HCLTV)\
    \ Ratios). Gap-fill (verbatim, ID-diff). \n"
obligations:
- id: fnma-sel-b2-1.2-03-0
  canonical_id: fnma-sel-b2-1.2-03-0
  section: Fannie Mae Single Family Selling Guide B2-1.2-03
  description: 'B2-1.2-03 Home Equity Combined Loan-to-Value (HCLTV) Ratios: (02/23/2016) Introduction This topic
    contains information on HCLTV ratios, including: Calculation of the HCLTV Ratio Permanently Modiﬁed HELOCs'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fnma-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Fannie Mae Single Family Selling Guide B2-1.2-03, Home Equity Combined Loan-to-Value (HCLTV) Ratios
      (02/23/2016)
    source_class: gse-guide
    source_url: https://selling-guide.fanniemae.com/
    snapshot_id: 5f7b8b79da595d76
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:98cf85a02861bbe84914a0e339b327c8fc131869a8a573882007bbeea60c5701
    paragraph_quote: '(02/23/2016) Introduction This topic contains information on HCLTV ratios, including: Calculation
      of the HCLTV Ratio Permanently Modiﬁed HELOCs'
    drafter_attestation: Verbatim from Fannie Mae Single Family Selling Guide B2-1.2-03 body (max-gap occurrence),
      snapshot 5f7b8b79da595d76; substring-verified.
  judgment: false
- id: fnma-sel-b2-1.2-03-1
  canonical_id: fnma-sel-b2-1.2-03-1
  section: Fannie Mae Single Family Selling Guide B2-1.2-03
  description: 'B2-1.2-03 Home Equity Combined Loan-to-Value (HCLTV) Ratios: , 2026 165 Calculation of the HCLTV
    Ratio For ﬁrst mortgages that have subordinate ﬁnancing under a HELOC, the lender must calculate the HCLTV ratio.
    This is determined by dividing the sum of the items listed below by the lesser of the sales price or appraised
    value of the proper…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fnma-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Fannie Mae Single Family Selling Guide B2-1.2-03, Home Equity Combined Loan-to-Value (HCLTV) Ratios
      (02/23/2016)
    source_class: gse-guide
    source_url: https://selling-guide.fanniemae.com/
    snapshot_id: 5f7b8b79da595d76
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:98cf85a02861bbe84914a0e339b327c8fc131869a8a573882007bbeea60c5701
    paragraph_quote: ', 2026 165 Calculation of the HCLTV Ratio For ﬁrst mortgages that have subordinate ﬁnancing
      under a HELOC, the lender must calculate the HCLTV ratio. This is determined by dividing the sum of the items
      listed below by the lesser of the sales price or appraised value of the property. the original loan amount
      of the ﬁrst mortgage, the full amount of any HELOCs (whether or not funds have been drawn), and the unpaid
      principal balance (UPB) of all closed-end subordinate ﬁnancing. Note: For each subordinate liability, in order
      for the lender to accurately calculate the HCLTV ratio for eligibility and underwriting purposes, the lender
      must determine the maximum credit line for all HELOCs, if applicable, and the unpaid principal balance for
      all closed-end subordinate ﬁnancing. If any subordinate ﬁnancing is not shown on a credit report, the lender
      must obtain documentation from the borrower or creditor. If the borrower discloses, or the lender discovers,
      new (or increased) subordinate ﬁnancing after the underwriting decision has been made, up to and concurrent
      with closing, the lender must re- underwrite the mortgage loan. (See'
    drafter_attestation: Verbatim from Fannie Mae Single Family Selling Guide B2-1.2-03 body (max-gap occurrence),
      snapshot 5f7b8b79da595d76; substring-verified.
  judgment: false
- id: fnma-sel-b2-1.2-03-2
  canonical_id: fnma-sel-b2-1.2-03-2
  section: Fannie Mae Single Family Selling Guide B2-1.2-03
  description: 'B2-1.2-03 Home Equity Combined Loan-to-Value (HCLTV) Ratios: Debt-to-Income Ratios, for additional
    information.) Permanently Modiﬁed HELOCs If the lender determines the HELOC has been permanently modiﬁed and
    the outstanding UPB is less than the permanently modiﬁed HELOC, the lender must use the modiﬁed HELOC amount
    in calculating the HCLTV…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fnma-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Fannie Mae Single Family Selling Guide B2-1.2-03, Home Equity Combined Loan-to-Value (HCLTV) Ratios
      (02/23/2016)
    source_class: gse-guide
    source_url: https://selling-guide.fanniemae.com/
    snapshot_id: 5f7b8b79da595d76
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:98cf85a02861bbe84914a0e339b327c8fc131869a8a573882007bbeea60c5701
    paragraph_quote: 'Debt-to-Income Ratios, for additional information.) Permanently Modiﬁed HELOCs If the lender
      determines the HELOC has been permanently modiﬁed and the outstanding UPB is less than the permanently modiﬁed
      HELOC, the lender must use the modiﬁed HELOC amount in calculating the HCLTV ratio for eligibility purposes
      and for delivery. The lender must obtain appropriate documentation that the HELOC has been permanently modiﬁed
      and include this documentation in the loan ﬁle. If the outstanding UPB is greater than the permanently modiﬁed
      HELOC, the lender must use the outstanding UPB to calculate the HCLTV ratio for eligibility purposes and for
      delivery. As noted above, the lender must obtain appropriate documentation and include that documentation
      in the loan ﬁle. In no case may the CLTV ratio exceed the HCLTV ratio. Note: The HCLTV ratio calculation may
      diﬀer for certain mortgage loans. For details on these diﬀerences, see'
    drafter_attestation: Verbatim from Fannie Mae Single Family Selling Guide B2-1.2-03 body (max-gap occurrence),
      snapshot 5f7b8b79da595d76; substring-verified.
  judgment: false
- id: fnma-sel-b2-1.2-03-3
  canonical_id: fnma-sel-b2-1.2-03-3
  section: Fannie Mae Single Family Selling Guide B2-1.2-03
  description: 'B2-1.2-03 Home Equity Combined Loan-to-Value (HCLTV) Ratios: Conversion of Construction-to-Permanent
    Financing: Single-Closing Transactions;'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fnma-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Fannie Mae Single Family Selling Guide B2-1.2-03, Home Equity Combined Loan-to-Value (HCLTV) Ratios
      (02/23/2016)
    source_class: gse-guide
    source_url: https://selling-guide.fanniemae.com/
    snapshot_id: 5f7b8b79da595d76
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:98cf85a02861bbe84914a0e339b327c8fc131869a8a573882007bbeea60c5701
    paragraph_quote: 'Conversion of Construction-to-Permanent Financing: Single-Closing Transactions;'
    drafter_attestation: Verbatim from Fannie Mae Single Family Selling Guide B2-1.2-03 body (max-gap occurrence),
      snapshot 5f7b8b79da595d76; substring-verified.
  judgment: false
- id: fnma-sel-b2-1.2-03-4
  canonical_id: fnma-sel-b2-1.2-03-4
  section: Fannie Mae Single Family Selling Guide B2-1.2-03
  description: 'B2-1.2-03 Home Equity Combined Loan-to-Value (HCLTV) Ratios: HomeStyle Renovation Mortgages: Collateral
    Considerations; and'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fnma-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Fannie Mae Single Family Selling Guide B2-1.2-03, Home Equity Combined Loan-to-Value (HCLTV) Ratios
      (02/23/2016)
    source_class: gse-guide
    source_url: https://selling-guide.fanniemae.com/
    snapshot_id: 5f7b8b79da595d76
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:98cf85a02861bbe84914a0e339b327c8fc131869a8a573882007bbeea60c5701
    paragraph_quote: 'HomeStyle Renovation Mortgages: Collateral Considerations; and'
    drafter_attestation: Verbatim from Fannie Mae Single Family Selling Guide B2-1.2-03 body (max-gap occurrence),
      snapshot 5f7b8b79da595d76; substring-verified.
  judgment: false
- id: fnma-sel-b2-1.2-03-5
  canonical_id: fnma-sel-b2-1.2-03-5
  section: Fannie Mae Single Family Selling Guide B2-1.2-03
  description: 'B2-1.2-03 Home Equity Combined Loan-to-Value (HCLTV) Ratios: Community Seconds Loan Eligibility.
    Note: Refer to the Eligibility Matrix for maximum allowable HCLTV ratios. Recent Related Announcements There
    are no recently issued Announcements related to this topic.'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fnma-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Fannie Mae Single Family Selling Guide B2-1.2-03, Home Equity Combined Loan-to-Value (HCLTV) Ratios
      (02/23/2016)
    source_class: gse-guide
    source_url: https://selling-guide.fanniemae.com/
    snapshot_id: 5f7b8b79da595d76
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:98cf85a02861bbe84914a0e339b327c8fc131869a8a573882007bbeea60c5701
    paragraph_quote: 'Community Seconds Loan Eligibility. Note: Refer to the Eligibility Matrix for maximum allowable
      HCLTV ratios. Recent Related Announcements There are no recently issued Announcements related to this topic.'
    drafter_attestation: Verbatim from Fannie Mae Single Family Selling Guide B2-1.2-03 body (max-gap occurrence),
      snapshot 5f7b8b79da595d76; substring-verified.
  judgment: false
