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27-465: The Standard covers 8.5 million people (June 30, 2008) in the USA through and out of above 30,000 employers with group and individual disability insurance, group life, AD&D and dental insurance, retirement plans products and services, individual annuities. It is licensed in 49 states and Washington, DC. In New York it has Standard Life Insurance Company of New York. The average loan-to-value ratio on new loans

54-592: A Guarantor home loan . This flexibility in LVR reflects the market's capacity to cater to a diverse range of borrowing needs while balancing the inherent risks associated with high LVR lending. The structure of LVR in Australia, particularly for high LVR loans, showcases the evolving dynamics of real estate financing. The option of high LVR loans expands access to property ownership but also introduces increased risk for both lenders and borrowers. Managing these risks, especially in

81-476: A constant ratio . The ratio is called coefficient of proportionality (or proportionality constant ) and its reciprocal is known as constant of normalization (or normalizing constant ). Two sequences are inversely proportional if corresponding elements have a constant product, also called the coefficient of proportionality. This definition is commonly extended to related varying quantities, which are often called variables . This meaning of variable

108-405: A linear equation in two variables with a y -intercept of 0 and a slope of k > 0, which corresponds to linear growth . Two variables are inversely proportional (also called varying inversely , in inverse variation , in inverse proportion ) if each of the variables is directly proportional to the multiplicative inverse (reciprocal) of the other, or equivalently if their product

135-432: A 100th anniversary celebration the company launched The Standard Charitable Foundation with emphasis on helping individuals and families who have experienced a loss or setback such as a major disability or the loss of a loved one. In 2016, Standard Insurance settled a 2012 class action lawsuit in federal court naming Standard Insurance and New Mexico’s General Services Division as defendants in response to denied claims after

162-501: A percentage of the property's value. In the United States, conforming loans that meet Fannie Mae and Freddie Mac underwriting guidelines are limited to an Loan-to-value ratio (LTV) that is less than or equal to 80%. Conforming loans above 80% are allowed but typically require private mortgage insurance . Other over-80% LTV loan options exist as well. The Federal Housing Administration (FHA) insures purchase loans to 96.5% and

189-451: A property valued at $ 100,000 with a single mortgage of $ 50,000 has an LTV of 50%. A similar property with a value of $ 100,000 with a first mortgage of $ 50,000 and a second mortgage of $ 25,000 has an aggregate mortgage balance of $ 75,000 . The CLTV is 75%. Combined loan to value is an amount in addition to the Loan to Value, which simply represents the first position mortgage or loan as

216-443: A willing seller. Typically, banks will utilize the lesser of the appraised value and purchase price if the purchase is "recent" (within 1–2 years). Loan to value is one of the key risk factors that lenders assess when qualifying borrowers for a mortgage. The risk of default is always at the forefront of lending decisions, and the likelihood of a lender absorbing a loss increases as the amount of equity decreases. Therefore, as

243-461: Is $ 130,000 to 150,000 or ⁠ $ 130,000 / $ 150,000 ⁠ , or 87%. The remaining 13% represent the lender's haircut , adding up to 100% and being covered from the borrower's equity. The higher the LTV ratio, the riskier the loan is for a lender. The valuation of a property is typically determined by an appraiser , but a better measure is an arms-length transaction between a willing buyer and

270-456: Is directly proportional to x if there is a positive constant k such that: The relation is often denoted using the symbols "∝" (not to be confused with the Greek letter alpha ) or "~", with exception of Japanese texts, where "~" is reserved for intervals: For x ≠ 0 {\displaystyle x\neq 0} the proportionality constant can be expressed as the ratio: It

297-420: Is a constant function . If several pairs of variables share the same direct proportionality constant, the equation expressing the equality of these ratios is called a proportion , e.g., ⁠ a / b ⁠ = ⁠ x / y ⁠ = ⋯ = k (for details see Ratio ). Proportionality is closely related to linearity . Given an independent variable x and a dependent variable y , y

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324-463: Is a constant. It follows that the variable y is inversely proportional to the variable x if there exists a non-zero constant k such that or equivalently, x y = k {\displaystyle xy=k} . Hence the constant " k " is the product of x and y . The graph of two variables varying inversely on the Cartesian coordinate plane is a rectangular hyperbola . The product of

351-402: Is a financial term used by lenders to express the ratio of a loan to the value of an asset purchased. In real estate , the term is commonly used by banks and building societies to represent the ratio of the first mortgage line as a percentage of the total appraised value of real property . For instance, if someone borrows $ 130,000 to purchase a house worth $ 150,000 , the LTV ratio

378-516: Is also called the constant of variation or constant of proportionality . Given such a constant k , the proportionality relation ∝ with proportionality constant k between two sets A and B is the equivalence relation defined by { ( a , b ) ∈ A × B : a = k b } . {\displaystyle \{(a,b)\in A\times B:a=kb\}.} A direct proportionality can also be viewed as

405-465: Is deemed low risk for conforming loans, and 60% and below for a no doc loan or low doc loan. Unique to the Australian market is the availability of higher LVR loans, which can extend up to 95% with mortgage insurance and even 100% LVR loans under certain conditions. These 100% LVR loans, designed for buyers without a deposit, are contingent upon stringent requirements, including a guarantor, also known as

432-446: Is not the common meaning of the term in mathematics (see variable (mathematics) ); these two different concepts share the same name for historical reasons. Two functions f ( x ) {\displaystyle f(x)} and g ( x ) {\displaystyle g(x)} are proportional if their ratio f ( x ) g ( x ) {\textstyle {\frac {f(x)}{g(x)}}}

459-468: The United States Department of Veterans Affairs and United States Department of Agriculture guarantee purchase loans to 100%. Properties with more than one lien, such as a second lien, are subject to combined loan to value (CLTV) criteria. The CLTV for a property valued at $ 100,000 with a $ 50,000 first mortgage and a home equity lines of credit ( HELOC ) balance of $ 10,000 would be

486-405: The x and y values of each point on the curve equals the constant of proportionality ( k ). Since neither x nor y can equal zero (because k is non-zero), the graph never crosses either axis. Direct and inverse proportion contrast as follows: in direct proportion the variables increase or decrease together. With inverse proportion, an increase in one variable is associated with a decrease in

513-439: The 60% ( $ 50,000 + $ 10,000 )/ $ 100,000 . The LTV for the stand-alone seconds and Home Equity Line of Credit would be the loan balance as a percentage of the appraised value. However, in order to measure the riskiness of the borrower, one should look at all outstanding mortgage debt. In the Australian financial context, the loan-to-value ratio (LVR) is a critical metric in the mortgage industry. Typically, an LVR of 80% or lower

540-730: The LTV ratio of a loan increases, the qualification guidelines for certain mortgage programs become much more strict. Lenders can require borrowers of high LTV loans to buy mortgage insurance to protect the lender from the buyer's default, which increases the costs of the mortgage. Low LTV ratios (below 80%) may carry with them lower rates for lower-risk borrowers and allow lenders to consider higher-risk borrowers, such as those with low credit scores , previous late payments in their mortgage history, high debt-to-income ratios , high loan amounts or cash-out requirements, insufficient reserves and/or no income. However, an LTV higher than 80% may carry Mortgage Insurance requirements, which will in turn offer

567-578: The UK, the Loan-to-value ratio (LTV) ranges typically range between 60% to 95% LTV, with fewer 95% mortgages available. In the run-up to the national / global economic problems mortgages with an LTV of up to 125% were quite common, but lenders stopped offering them in 2008. Proportionality (mathematics) In mathematics , two sequences of numbers, often experimental data , are proportional or directly proportional if their corresponding elements have

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594-505: The basic loan to value which simply indicates the ratio between one primary loan and the property value. When "combined" is added, it indicates that additional loans on the property have been considered in the calculation of the percentage ratio. The aggregate principal balance(s) of all mortgages on a property divided by its appraised value or purchase price, whichever is less. Distinguishing CLTV from LTV serves to identify loan scenarios that involve more than one mortgage. For example,

621-504: The borrower a lower interest rate. Higher LTV ratios are primarily reserved for borrowers with higher credit scores and a satisfactory mortgage history. Full financing, or 100% LTV, is reserved for only the most credit-worthy borrowers. The loans with LTV ratios higher than 100% are called underwater mortgages. Combined loan to value ratio (CLTV) is the proportion of loans (secured by a property ) in relation to its value . The term " combined loan to value" adds additional specificity to

648-887: The context of 100% LVR loans, is critical to the Australian mortgage sector. It underscores the market's nuanced approach to promoting homeownership while maintaining financial stability, primarily through risk mitigation strategies like guarantor-backed loans. In New Zealand, the Reserve Bank has introduced Loan-to-Value restrictions on the banks in order to slow the rapidly growing property market - particularly in Auckland. The LVR restrictions mean that banks are not permitted to make more than 10 percent of their residential mortgage lending to high-LVR (less than 20 percent deposit) owner-occupier borrowers and they must restrict their high-LVR (less than 40 percent deposit) lending to investors to no more than 5 percent of residential mortgage lending. In

675-600: The death of the covered employee. The settlement of $ 2.4 million provides between $ 5.06 - $ 42.05 to the 74,505 public employees who paid for life insurance coverage through their state employment. Standard's headquarters in Portland are located in the Standard Insurance Center . The company also has offices in Standard Plaza . It owns both buildings. Loan-to-value ratio The loan-to-value ( LTV ) ratio

702-462: The other. For instance, in travel, a constant speed dictates a direct proportion between distance and time travelled; in contrast, for a given distance (the constant), the time of travel is inversely proportional to speed: s × t = d . The concepts of direct and inverse proportion lead to the location of points in the Cartesian plane by hyperbolic coordinates ; the two coordinates correspond to

729-488: Was 64 percent in 2008. Standard Insurance Company has maintained an “A” rating or higher from A.M. Best Company since 1928. Assets $ 14.56 billion (March 31, 2009). 3,400 employees in 2008. In December 2005 revenue was $ 2,147,500,000. On February 24, 1906 Leo Samuel , a German immigrant, founded the Oregon Life Insurance Company. In 1946 the company name was changed to Standard Insurance Company. In 2006, on

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