Predictika · conventional loan eligibility and LLPA pricing: limits, LTV, underwriting and loan-level price adjustments
An AI sales agent prepares a quote for a conventional mortgage for a fictional borrower, with its LLPA total in dollars. Before the rate lock goes out, the agent sends it to Predictika’s validator, which checks it against eligibility, underwriting and LLPA rules, compares the LLPA total the agent states with the one it computes, and returns a verdict with every reason.
This validator models conventional conforming and high-balance purchase and refinance quotes, for five sample counties, and the Fannie Mae-style LLPA grids. It handles any combination of purpose, occupancy, property, program and underwriting choices the model supports, not just the scenarios shown below.
It does not cover FHA, VA or USDA loans, loans above the high-balance limit, other lenders’ or agencies’ rules, counties beyond the five modeled, real Fannie Mae LLPAs or eligibility decisions, or any real borrower.
7 scenarios in 3 groups · each group runs from the agent’s first attempt to the outcome · click one to switch
Illustrative agent statement. The validator receives the structured request below.
Proposing agent: AI sales agent (scripted)
Before sending, the agent must call Recorded run
What this means
Our assessment of what a typical rules-based CPQ (product rules, price rules and validation rules, as in Salesforce CPQ or Revenue Cloud) does with the same cases. It is a judgment about effort and reliability, not a claim that nothing can be built.
| What the validator catches | Typical rules-based CPQ | Predictika |
|---|---|---|
| Eligibility that depends on several choices together | Only with workarounds Maximum LTV is a matrix of purpose, occupancy, units, property type and high balance, and the over-95 percent exception adds a second set of conditions; each combination tends to become a separate rule. | All conditions are evaluated together on every call, whatever order the choices arrive in. |
| County loan limits | Only with care Limits are a lookup by county and unit count that must be kept complete, and the baseline and high-balance tiers feed both eligibility and pricing. | The county row supplies the limit, and the same value drives the check and the high-balance LLPA. |
| The LLPA grid | Only with care A grid by score band and LTV bucket, with separate tables for purchase and cash-out and waivers for some programs, is manageable in a price rule but grows with every new row. | The score band row is selected by rule and the grid LLPA is computed once for every check to read. |
| Attribute LLPAs added up in points and dollars | Only with workarounds Seven optional adjustments, each with its own waiver conditions and its own LTV table, must be summed and converted to dollars in a defined order. | Each LLPA is computed once; the points, dollars and line items all come from the same figures. |
| DTI and approval steps | Only with care Two DTI limits by underwriting type, an approval step and a place to record the approval need separate rules. | All thresholds are evaluated together and returned with the reason. |
| The LLPA total the agent states | Only with workarounds Comparing a stated total with a computed one means a separate rule per quote layout, and price rules rarely run on stated figures. | The stated LLPA total is a field in the request and is checked against the computed total. |
| Every problem returned in one answer | Only with workarounds Rules tend to fire as the quote is saved, so a rep often fixes one error and meets the next. | All findings come back together, whatever order the choices arrived in. |
Every rule is checked on every call, in whatever order the choices arrive, and one problem never hides another. Blocking findings stop the quote; approval findings need a person to sign off; everything else is computed.
| Rule | Effect | What it checks |
|---|---|---|
| 1 | computed | The county sets the conforming loan limit; loans above the baseline limit are high balance |
| 2 | block | Maximum LTV depends on purpose, occupancy, unit count, property type and high-balance status |
| 3 | block | LTV above 95 percent needs a fixed-rate 1-unit principal residence purchase or rate-term refinance, and for a standard purchase at least one first-time homebuyer |
| 4 | block | CLTV may not be below LTV, and with subordinate financing it may not exceed the maximum LTV |
| 5 | block | HomeReady needs a principal residence and income at or below 80 percent of the area median |
| 6 | block | The loan amount must not exceed the county limit for the unit count |
| 7 | block | A second home must be a 1-unit property; condos and manufactured homes cannot be 2-4 units |
| 8 | block | A manually underwritten loan needs a credit score of at least 620; automated underwriting has no minimum |
| 9 | approval, then block | DTI above 45 percent on an automated finding needs a person to confirm it; above 50 percent is blocked, and manually underwritten loans are blocked above 45 |
| 10 | needs approval | A manually underwritten loan needs an underwriter to sign off |
| 11 | block | Reserves in months must meet the minimum for occupancy and unit count |
| 12 | block | Mortgage insurance coverage must meet the requirement for the LTV and term |
| 13 | computed | The LLPA grid is chosen by credit score band and LTV bucket (purchase and rate-term, or cash-out), and is waived for HomeReady, terms of 15 years or less, and first-time buyers at or below 100 percent of the area median |
| 14 | computed | Attribute LLPAs are added for occupancy, unit count, condo, manufactured home, subordinate financing, ARM and high balance |
| 15 | computed | The LLPA in dollars is the total points times the loan amount |
| 16 | block | The LLPA total the agent states must match the validator total within $1 |
The recorded result of the validator for each scenario on this page: the request the AI agent sent, the verdict, and every finding, in the order they appear above.
The agent's request. A 30-year fixed conventional purchase loan of $350,000 at 97 percent LTV, single-family primary residence in Ada County, Idaho. Credit score 700, DTI 38 percent, 35 percent mortgage insurance coverage, standard program, not a first-time buyer. LLPA total $3,062.50. Ready to lock.
Verdict: Blocked.
The agent's request. A 30-year fixed conventional purchase loan of $350,000 at 97 percent LTV, single-family primary residence in Ada County, Idaho. Credit score 700, DTI 38 percent, 35 percent mortgage insurance coverage, first-time homebuyer with income at 150 percent of the area median. LLPA total $3,062.50. Ready to lock.
Verdict: Allowed.
The agent's request. A 30-year fixed conventional purchase loan of $900,000 at 80 percent LTV, single-family primary residence in Denver County, Colorado. Credit score 780, DTI 38 percent. LLPA total $12,375.00. Ready to lock.
Verdict: Blocked.
The agent's request. A 30-year fixed conventional purchase loan of $850,000 at 80 percent LTV, single-family primary residence in Denver County, Colorado. Credit score 780, DTI 38 percent. LLPA total $11,687.50. Ready to lock.
Verdict: Allowed.
The agent's request. A 30-year fixed conventional purchase loan of $400,000 at 80 percent LTV, single-family primary residence in Dallas County, Texas. Credit score 760, DTI 38 percent. LLPA total $2,000.00. Ready to lock.
Verdict: Blocked.
The agent's request. A 30-year fixed conventional purchase loan of $400,000 at 80 percent LTV, single-family primary residence in Dallas County, Texas. Credit score 760, DTI 38 percent. LLPA total $2,500.00. Ready to lock.
Verdict: Allowed.
The agent's request. A 30-year fixed conventional purchase loan of $300,000 at 75 percent LTV, single-family primary residence in Dallas County, Texas. Credit score 740, DTI 48 percent, automated underwriting finding Approve/Eligible. Approval has been granted. LLPA total $1,125.00. Ready to lock.
Verdict: Needs approval.
The text of the narrated walkthrough, step by step.