CFPB: Methodology for Determining Average Prime Offer Rates

The Consumer Financial Protection Bureau (CFPB) announced a revised version of its “Methodology for Determining Average Prime Offer Rates.” 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 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 began using ICE Mortgage Technology data and the CFPB’s revised methodology to calculate APORs.

Notice of Availability of Revised Methodology for Determining Average Prime Offer Rates

Methodology for Determing Average Prime Offer Rates