HMDA Rate Spread Calculator
Three different rate spread methods have applied since 2004. Find the right FFIEC or CFPB calculator for your reporting year, plus the rules for when the spread is NA.
The Rate Spread Calculator within the RATA Comply Suite was developed to assist institutions with the Regulation C requirements for reporting HMDA Rate Spread data. Since 2004, when the reporting of Rate Spread was first introduced, three different processes have been used for the calculation:
- Beginning in 2018, the spread is calculated between the Annual Percentage Rate (APR) and the “Average Prime Offer Rates.” There is no longer a distinction that it only be reported when exceeding a given threshold. In cases where the spread should be reported, it is always reported whether negative or positive, to a minimum of 3 decimal places of precision.
- In the Q4 2009–2017 timeframe, the spread was calculated between the APR and the “Average Prime Offer Rates.” If the spread exceeded 1.5% or 3.5% for 1st and 2nd lien loan originations respectively, it was reported to 2 decimal places of precision.
- In the 2004–Q3 2009 period, the spread was calculated between the APR and the “Treasury Securities of Comparable Maturity.” If the spread exceeded 3% or 5% for 1st and 2nd lien loan originations respectively, it was reported to 2 decimal places of precision.
Or Skip the Lookup Entirely
The RATA Comply Suite calculates the rate spread for any year of HMDA data automatically, always using the correct methodology and comparative data for the time period in question — no manual lookup, no tracking which threshold applied when.
When the Spread Is ‘NA’
A rate spread of ‘NA’ results from one or more data parameters that do not meet the specifications for reporting it. The conditions differ by reporting period.
Current Methodology
- Reported on originated loans, applications approved but not accepted (Action Taken = 2), and preapproval requests approved but not accepted (Action Taken = 8). Any other action taken results in ‘NA’.
- If the loan is a Reverse Mortgage, enter ‘NA’.
- If the loan is primarily for a business or commercial purpose, enter ‘NA’.
- If none of the above apply, the rate spread is calculated and reported.
Prior Methodology
- Reported on originated loans only (Action Taken = 1); any other action results in ‘NA’.
- Business/commercial purpose, non-dwelling-secured home improvement, or purchased loans: enter ‘NA’.
- Lien status 1 with a spread under 1.5 points, or lien status 2 under 3.5 points: ‘NA’.
- Lien status 3 (not secured) or 4 (purchased loan): ‘NA’. HELOCs, if reported, are also ‘NA’.
- Otherwise the spread is calculated and reported to 2 decimal places when it exceeds the threshold.
Original Methodology
- Reported on originated loans only (Action Taken = 1); any other action results in ‘NA’.
- Business/commercial purpose, non-dwelling-secured home improvement, or purchased loans: enter ‘NA’.
- Lien status 1 with a spread under 3 points, or lien status 2 under 5 points: ‘NA’.
- Lien status 3 (not secured) or 4 (purchased loan): ‘NA’. HELOCs, if reported, are also ‘NA’.
- Otherwise the spread is calculated and reported to 2 decimal places when it exceeds the threshold.
Links to Government Calculators
One calculator per reporting period, linked directly to the FFIEC and CFPB tools.
CFPB / FFIEC Rate Spread Calculator
The current calculator, for HMDA data reported for 2018 and later.
Open the calculatorFFIEC Rate Spread Calculator
For HMDA data reported during the Q4 2009–2017 window.
Open the calculatorFFIEC Rate Spread Calculator (Legacy)
For HMDA data reported during the original 2004–Q3 2009 window.
Open the calculatorNote: Do not use a rate spread calculator to calculate the HOEPA status; they are two different fields which require two different calculations.
For more information on RATA Associates or the RATA Comply Suite, please contact us.
