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%