Tag Archives: Puzzle #2

Puzzle #2: Answers to Follow-up Questions

Posted on March 14, 2011 by Win Smith

Puzzle #2 asked how a $6 million mortgage pool with a weighted average LTV of 80% could have a total property value of $9 million when the average LTV implies a value of $7.5 million. Chun Lee NG gave a good general … Continue reading →

Posted in Fun, Math, Mortgage-Backed Securities, Puzzles | Tagged , , , , , | 2 Comments

Puzzle #2: Follow-up Questions

Posted on March 4, 2011 by Win Smith

Puzzle #2 asked how a $6 million mortgage pool with a weighted average LTV of 80% could have a total property value of $9 million when the average LTV implies a value of $7.5 million. Chun Lee NG provided a good explanation … Continue reading →

Posted in Fun, Math, Mortgage-Backed Securities, Puzzles | Tagged , , , , | 1 Comment

Puzzle #2: Weighted Average LTV

Posted on March 2, 2011 by Win Smith

The loan-to-value ratio (“LTV”) of a mortgage equals the loan amount divided by the property’s value. The LTV is a key indicator of mortgage quality. The lower the LTV, the more likely it is that the mortgage can be paid off … Continue reading →

Posted in Fun, Math, Mortgage-Backed Securities, Puzzles | Tagged , , , , | 12 Comments