WASHINGTON—The CFPB has introduced a revised version of its Methodology for Determining Average Prime Offer Rates.
According to the Bureau, the revised methodology describes the calculations used to determine average prime offer rates (APOR) for purposes of federal mortgage rules. APORs are annual percentage rates derived from average interest rates, points, and other loan pricing terms currently offered to consumers by a representative sample of creditors for mortgage loans that have low-risk pricing characteristics, the CFPB said.
The CFPB said the methodology statement has been revised to address the upcoming “unavailability of certain data” the CFPB previously relied on to calculate APORs. On or after April 21, 2023, the CFPB said it will begin using ICE Mortgage Technology data and the CFPB’s revised methodology to calculate APORs.
The CFPB added that it will continue to post the survey data used to calculate APORs on the Federal Financial Institutions Examination Council’s website, and will continue to identify the source of the data on that page.