CFPB Announces Revised Methodology for Determining APOR

The Consumer Financial Protection Bureau (CFPB) recently announced an update of its “Methodology for Determining Average Prime Offer Rates,” (APOR) with respect to 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 Bureau, certain data points mapped from the Freddie Mac Primary Mortgage Survey, which the CFPB has historically used to calculate APORs, will soon be unavailable. Beginning April 21, the CFPB will begin using ICE Mortgage Technology data coupled with the CFPB’s revised methodology to calculate APORs.

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