APOR, used in HOEPA determinations, stands for what?

APOR, used in HOEPA determinations, stands for what?

• A. Average Prime Offer Rate
• B. Average Prime Offer Ratio
• C. Applicable Prime Offer Rate
• D. Average Price Offer Rate

Answer: (A)

APOR stands for Average Prime Offer Rate. In HOEPA determinations, a loan’s APR is measured against APOR to decide if it’s high-cost. APOR is the market benchmark that reflects the average rate and offers available to prime borrowers for a given loan type at roughly the time of application. It represents what lenders are offering in the market, not what a single borrower was quoted. If the APR exceeds APOR by the required threshold (for example, six percentage points for a first-lien), the loan triggers HOEPA protections. The other options aren’t the standard regulatory term.

APOR stands for Average Prime Offer Rate. In HOEPA determinations, a loan’s APR is measured against APOR to decide if it’s high-cost. APOR is the market benchmark that reflects the average rate and offers available to prime borrowers for a given loan type at roughly the time of application. It represents what lenders are offering in the market, not what a single borrower was quoted. If the APR exceeds APOR by the required threshold (for example, six percentage points for a first-lien), the loan triggers HOEPA protections. The other options aren’t the standard regulatory term.