Similar to identity theft, this type of fraud happens when an unauthorized individual gain access through online banking applications, capturing the account information to create and write bad checks.
An adverse action notice is a document sent to a loan applicant stating a bank’s rationale for denying a loan. It may also contain a counteroffer, such as a lesser amount or a request for an approved co-borrower.
The term “aging exceptions” refers to a group of critical exceptions that have not been resolved within a reasonable amount of time.
Altered check fraud occurs when a fraudster changes the amounts and Payee from a stolen check.
Audit and exam prep is a process that financial institutions go through in order to adequately prepare for upcoming audits and exams.
An authorized signer form is a document that allows an account holder to grant a range of clearance levels to individuals to perform certain functions within a bank account.

What is a Rate Spread Calculator?

The Rate Spread Calculator is an online tool provided by the Federal Financial Institutions Examination Council (FFIEC) that helps bankers compare a loan’s APR to the national average, based on the set of terms offered in a HMDA-reportable loan.

Why Do Bankers Use the Rate Spread Calculator?

Rate spread is just one of many data points that banks must include in their Loan Application Register (LAR) to ensure ongoing HMDA compliance. The LAR asks for both demographic information about the loan applicant as well as loan terms offered by the bank or credit union. Using the Rate Spread Calculator allows the bank to generate a rate spread data point to input into the LAR.

Rate Spread Calculator Fields

  • The Rate Spread Calculator requires several data points to generate an accurate rate spread, including:
  • Amortization type
  • Lock-in date
  • APR
  • Term information
  • Lien status information

Rate Spread Calculator Options

Banks and credit unions can use one of two calculator tool options to pull information for their LAR reporting:

Looking for additional banking information?

Browse our banking definitions page for more terminology.

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