The FFIEC rate spread calculator warns not to use the calculator to test for HOEPA. My question is, can we use the calculator to run just the rate spread portion of the HOEPA test? We obviously would have to find a different way to test for points and fees, and the prepayment penalty.

You can, but depending on the type of loan, the APR that you will be testing is not the APR from your disclosures - hence the warning on the FFIEC site.

I'm not sure what you're saying, can you provide more detail? When is the APR tested different from that on our disclosure?

Refer to 1026.32(a)(3) Determination of APR

Thanks for that. I think we're okay to use the calculator with our fixed rate loans. We can also use it with our variable rate loans as long as the index doesn't change between the time the rate is set and the opening of the loan - our margins never change.