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 2.5 percentage points, compared with about 2.0 percentage points for higher-priced first-lien nonconventional loans used for the same purpose (table 11).
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.
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.
Lenders are now required to compare the APR on the loan with the "average prime offer rate" (APOR) for loans of a similar type (for example, a 30-year fixed-rate mortgage).
Although there is considerable variation across loan products in the incidence of higherpriced lending, the variation across products in mean and median APOR spreads as reported in the HMDA data is much smaller.
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.