[quote=patientrenter]I suggest limiting CLTV to 80%. [/quote]
I agree with 80% on SFRs. I’d limit it to 70% on CRE. And I’d end the practice of “interest reserves” on construction and development loans. The borrower would have to show that they are capable of making the interest payments on the loan with their pre-loan liquidity (such that the bank isn’t lending them the interest payments, so to speak).
