Conventional Base Rate Index

The conventional baseline scenario is a Conforming 30-year Fixed Rate Mortgage for a $400,000 loan on a $500,000 property (LTV ratio of 80%), for a borrower with a middle credit score of 750, living in California, on a purchase transaction. See "What is the Methodology" for additional detail.

FHA Rate Index

The FHA baseline scenario is an FHA 30-year Fixed Rate Mortgage for a $400,000 loan on a $421,000 property ( LTV ratio of 95%), for a borrower with a middle credit score of 650, living in California, on a purchase transaction. See "What is the Methodology" for additional detail.
Last Updated: 10/23/14 5:47 PMTodayChange
FHA Rate Index Baseline+ 4.505%- 0.000%
Adjustments relative to baseline
Rate increase for higher loan amount (FHA jumbo)+ 0.249%- 0.000%
Rate decrease for 15-year FRM - 0.481%+ 0.017%
Rate decrease for 5/1 ARM- 0.333%+ 0.033%
Rate decrease for conforming loan with LTV=80%- 0.102%+ 0.007%

About AMRi

LoanSifter Available Mortgage Rate Index™ (AMRi) is a new mortgage rate index which uses techniques developed by researchers at the Federal Reserve Bank of Boston to search through thousands of loan offers from dozens of lenders to measure what's available to borrowers. The AMRi allows borrowers, lenders, counselors, investors, and researchers to get market information from the LoanSifter pricing engine, the same technology used by thousands of mortgage professionals every day to price mortgages.

How Does it Work?

The LoanSifter AMRi offers baseline indices for 30-year Fixed Rate Conventional and FHA mortgages, updated daily with the calculated rate a borrower would receive from the average lender, based on the given par scenario. The change indicates how that rate has increased or decreased from yesterday’s rate for either baseline scenario. Twenty-five popular wholesale and correspondent lenders are marked up appropriately with standard fees and margins to calculate the median price (used for this comparison) and the lowest price, depicted in the corresponding baseline scenario charts.

However, every loan is based on individual borrowing characteristics, such as a low credit score or alternative types of loans. Offering a single rate does not provide an accurate picture of what rate a borrower could expect for their particular situation, so the LoanSifter AMRi offers the ability to adjust this baseline scenario. Below each baseline rate, the LoanSifter AMRi offers rate differences, demonstrating how each difference (from the median rate baseline) in borrower characteristics will impact the final rate, offered to the borrower. For a borrower with a lower credit score and a different loan type, you can adjust this baseline scenario with both adjustments to approximate the final rate.

It may also be useful in recognition of data trends, like noticing that a particular characteristic is becoming more or less expensive relative to the baseline scenario over a period of time.

What is the Methodology?

The AMRi uses techniques developed by researchers at the Federal Reserve Bank of Boston to provide borrowers with a meaningful estimate of what kind of rate they can expect for their individual circumstances. Based on historical trends, the baseline scenarios assume 3 points for total lending costs, including commission, fees, and SRPs, and tracks the daily change to the fully adjusted pricing, across 25 popular wholesale and correspondent investors. These lending channels cover 58% of the entire mortgage origination market. The FHA scenarios also include costs of PMI.

The baseline scenarios consists of a 30-year Fixed Rate Mortgage on Single Family Residence, Owner-Occupied, 30 Lock Days, purchase with no cash out, with an insignificant DTI ratio, and sufficient reserves, in California. We are not looking to do state variations, given the differences are negligible.

The conventional baseline uses a 750 middle score for a $400,000 loan on a $500,000 property (80% LTV) using a conventional product, while the FHA baseline has a 650 middle score for a $400,000 loan on a $421,000 property using an FHA product (95% LTV).
"The LoanSifter AMRI gives the mortgage industry a much more complete view of the realities of the market as they happen. Meanwhile, consumers get a closer view into the costs of currently available loans."

Bruce Backer
LoanSifter, President