On April 14, 2023, the CFPB announced a revised version of its “Methodology for Determining Average Prime Offer Rates, which 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.
According to the CFPB, the methodology statement was revised to address the upcoming unavailability of certain data the CFPB previously relied on to calculate APORs. The CFPB wilI use ICE Mortgage Technology data and the CFPB’s revised methodology to calculate APORs starting on April 21, 2023.
In addition, the CFPB will continue to post the survey data used to calculate APORs, as well as identify the source of the data, on the FFIEC’s website.
Read the CFPB’s announcement here.
The revised methodology statement can be found here.