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Determining Average Prime Offer

Question: 
How do I determine the Average Prime Offer Rate (APOR) when determining whether a loan is a Higher Priced Mortgage Loan (HPML)?
Answer: 

According to the FFIEC, the rate used would be based on the date the rate is locked and the term of the loan if fixed rate or the initial term if variable rate. There is an FFIEC Rate Spread Calculator located at http://www.ffiec.gov/ratespread/newcalc.aspx. In addition, the APOR Rates can be found at that location.

First published on 09/26/2011

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