Article Details
Id: | 8576 |
Product: | finPOWER |
Type: | FIX |
Version: | 5.07.33 |
Opened: | 08/02/2011 |
Closed: | 16/03/2011 |
Released: | 03/05/2011 |
Job: | J006904 |
Loan Security Analysis Report; LVR calculation incorrect when land items include Prior Ranking values
The Loan Security Analysis Report reports an incorrect LVR value when land items include a Prior Ranking value.
The calculation should be (Loan Balance + Prior Ranking) / Security Value. It was calculating as Loan Balance / (Security Value - Prior Ranking).
Eg, Loan balance = $50,000; Security Value = $200,000; Prior Ranking = $120,000. The LVR = (50,000 + 120,000) / 200,000 = 85%