Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of technology and data, today announced the launch of the ICE Average Prime Offer Rates Index (ICE APOR), which is updated weekly on the ICE Index Platform and publicly available.
The ICE APOR Index represents the annual percentage rates derived from average interest rates, points, fees and other terms on mortgages that are offered to consumers. ICE APOR uses the same data from ICE Mortgage Technology’s loan origination system, Encompass®, that the Consumer Financial Protection Bureau (CFPB) uses as the foundation of the weekly APOR rates it calculates and publishes.
“The existing APOR published by CFPB is a foundational rate that impacts residential mortgage lending standards and qualifications for securitization,” said Chris Edmonds, President of ICE Fixed Income and Data Services. “ICE’s deep experience leveraging transactional data and designing trusted benchmarks was critical in constructing ICE APOR, which is intended to provide additional and continued transparency for both lenders and participants in the mortgage-backed security market.”
For lenders, consumers, and secondary market participants, the APOR published by the CFPB is used to determine whether a loan meets certain regulatory requirements, which determination can also impact the terms of a mortgage and whether a loan qualifies for securitization by Government Sponsored Enterprises (GSEs), including Fannie Mae and Freddie Mac.
ICE has deep expertise administering and publishing important rates and indices that are used throughout global markets, and ICE’s extensive global index offering includes over 7,000 fixed income, equity, currency, commodity and mortgage indices that are trusted by market participants around the world and backed by a 50-year track record.
For more information about ICE’s Index Solutions, please visit https://www.ice.com/fixed-income-data-services/index-solutions.
