One of Fannie Mae's new loan-quality guidelines goes against the grain of traditional mathematics teaching.

As part of an initiative to make sure lenders deliver loans that meet its requirements, the GSE is changing how it calculates LTVs. They will be shortened to two decimal places, then rounded up — and only up — to the next whole percent. So while 80.001% would become 80%, a loan-to-value ratio of 96.01% would become 97%.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.