Let's see.........
The reg says:
"(12)For loans in which the ... APR exceeds the yield on a Treasury security with a comparable period of maturity ... by [3 ] percentage points for a loan secured by a first lien and by [5 ] percentage points for a loan secured by a junior lien, the difference between the APR and the yield on the comparable Treasury security."
Translating this into a program, I would have something like:
>Enter data>
APR = 15.50
SpreadTrigger = 3.00
USTYield = 2.50
>Perform HMDA test>
IF ((APR - USTYield) > SpreadTrigger) THEN
ReportableSpread = APR - USTYield
ELSE (do nothing)
ENDIF
>End program>
Substituting the data, we would have:
IF (15.50 - 2.50) > 3.00 THEN
ReportableSpread = 15.50 - 2.50 = 13.00
ENDIF
Since the test is true, you would report 13.00% as the rate spread on your LAR.
[This message has been edited by Richard Insley (edited 02-15-2002).]