At some points in the latter half of 2008, 30-year fixed-rate mortgages with spreads over the APOR of just 1 percentage point would have been reported as higher priced.
This estimated APR can then be compared with the APOR instead of with Treasury rates, as is done under the new price-reporting rule.
Distribution of price spread, 2013 Percent except as noted Purpose and type Total Number Loans with of loan number APOR spread above the threshold (1) Percent Site-built homes Home purchase Conventional 1,622,487 47,481 2.
The buyer of the home at APOR would have loan interest rate of 3.
The median rate spread over APOR for all manufactured-home loans in Home Mortgage Disclosure Act (HMDA) data for 2012 was 375 basis points, or 3.
As expected, consistent with the higher reporting threshold of junior-lien lending, higher-priced junior-lien loan products have higher mean and median APOR
spreads than do higher-priced first-lien loans.
8 Loans originated Loans with APOR
spread above the threshold (4) Type of home and loan Number Number Percent 1-4 FAMILY Nonbusiness related (1) Owner occupied Site built Home purchase Conventional First lien 1,243,784 39,405 3.
In 2011, the mean APOR spread reported for higher-priced first-lien conventional loans for the purchase of an owner-occupied site-built home was about 2.
Nevertheless, in previous articles, we have employed a methodology that adjusted the Treasury-based spread to a spread over the 30-year fixed-rate mortgage APOR reported in the PMMS.
The 2011 data indicate that among borrowers with higher-priced loans, the gross APOR spreads are similar across groups for both home-purchase and refinance lending.
As expected, consistent with the higher reporting threshold of junior-lien lending, higherpriced junior-lien loan products have higher mean and median APOR spreads than do higher-priced irst-lien loans.
As discussed earlier, the APOR for a 30-year fixed-rate mortgage fell sharply at the end of 2008 and into 2009, and then it fell to well under 5 percent in 2010 (figure 1).