LTV

How LTV is calculated

LTV is expressed as a percentage and computed using the standard formula:

LTV % = Loan amount × 100 / Collateral value, rounded to two decimal places.

There is one nuance about which “loan amount” is used:

On the application, the LTV uses the approved loan amount. The result is stored in the application record as LTV %.
In the verification screen (live preview, before the application is approved), the LTV is recalculated on the fly using the requested loan amount, so the verifier can see the impact of the value they just entered.

The LTV is updated whenever any of its inputs change. In practice, this means:

When the verifier enters or changes the collateral value during verification, the live LTV preview reacts immediately, and the saved LTV is updated when the verifier submits.
When the system re-evaluates collateral, it does so either automatically (on the scheduled date) or manually (when initiated by a credit officer). A new collateral value produces a new loan-level LTV.
When the approved loan amount changes as a result of underwriting decisions, the saved LTV reflects the latest approved amount.

LTV recalculation never happens spontaneously — it is always tied to a value change or a re-evaluation event.