real estate finance question 1 to 2 short paragraphs

When a potential borrower makes an application for a loan the lender will look at many different factors in order to make a decision to lend or not to lend.
As the lender studies the risk of the loan what department is reviewing information and what is the term for this process?
There is something called a LTV and ratios.  Explain the LTV and the ratios.  Are these meant to protect the lender or the borrower or both?  Explain.  Are they more important to borrower or lender?  If these ratios are ignored what are potential problems that may arise for  lender and/or borrower? 
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