Federal regulators are giving lenders a Web-based tool for figuring out the interest rate spreads on subprime loans that have to be reported under new Home Mortgage Disclosures Act requirements that go into effect Jan. 1.The Federal Financial Institutions Examination Council developed the "Rate Spread Calculator" and it is available on the council's website. "The Rate Spread Calculator generates the spread between the annual percentage rate and the comparable treasury security ...," the FFIEC says. Beginning next year, lenders will have to report the pricing on first mortgage loans if the spread equals or exceeds 3 percentage points and on second mortgages if the spread is 5 percentage points or more.
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