[Federal Register Volume 81, Number 154 (Wednesday, August 10, 2016)]
[Notices]
[Page 52831]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-18899]


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BUREAU OF CONSUMER FINANCIAL PROTECTION


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

AGENCY: Bureau of Consumer Financial Protection.

ACTION: Notice of availability.

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SUMMARY: The Bureau of Consumer Financial Protection (Bureau) announces 
the availability of a revised methodology statement, entitled the 
``Methodology for Determining Average Prime Offer Rates.'' The 
methodology statement describes the data and the methodology used to 
calculate average prime offer rates for purposes of Regulation C and 
Regulation Z. The statement has been revised to reflect the fact that 
the Bureau is using a different source of survey data for the one-year 
variable rate mortgage product to calculate average prime offer rates.

ADDRESSES: The revised methodology statement is available on the Web 
site of the Federal Financial Institutions Examination Council (FFIEC) 
at https://www.ffiec.gov/ratespread/newcalchelp.aspx#4.

FOR FURTHER INFORMATION CONTACT: Terry J. Randall, Counsel, Office of 
Regulations, at 202-435-7700.

SUPPLEMENTARY INFORMATION: The average prime offer rates (APORs) are 
annual percentage rates derived from average interest rates, points, 
and other loan pricing terms offered to borrowers by a representative 
sample of lenders for mortgage loans that have low-risk pricing 
characteristics. APORs have implications for data reporters under 
Regulation C and creditors under Regulation Z. Regulation C requires 
covered financial institutions to report, for certain transactions, the 
difference between a loan's annual percentage rate (APR) and the APOR 
for a comparable transaction.\1\ Under Regulation Z, a creditor may be 
subject to certain special provisions if the difference between a 
loan's APR and the APOR for a comparable transaction exceeds certain 
thresholds.\2\
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    \1\ 12 CFR 1003.4(a)(12)(i).
    \2\ 12 CFR 1026.35(a) and 1026.32(a)(1)(i).
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    The Bureau calculates APORs on a weekly basis according to a 
methodology statement that is available to the public. The Bureau has 
revised the methodology statement to reflect a change in the source of 
survey data for the one-year variable rate mortgage product that it 
began using to calculate the weekly APORs on July 7, 2016. The Freddie 
Mac Primary Mortgage Market Survey[supreg] (PMMS) previously provided 
survey data for that mortgage product that, together with data for 
other products from the same survey, has been used to calculate the 
weekly APORs. Freddie Mac has discontinued publishing the one-year 
variable rate mortgage data. Beginning on July 7, 2016, the Bureau 
started using data provided by HSH Associates for the one-year variable 
rate mortgage product to calculate the weekly APORs, while continuing 
to derive the other data used by the methodology from the PMMS. The 
Bureau has revised the methodology statement in light of that change. 
No other substantive changes have been made to the methodology 
statement.

    Dated: August 2, 2016.
Richard Cordray,
Director, Bureau of Consumer Financial Protection.
[FR Doc. 2016-18899 Filed 8-9-16; 8:45 am]
 BILLING CODE 4810-AM-P