Finanse publiczne · 17.10.1994

Monthly Median Cost of Funds Index

Since 1982, the Office of Thrift Supervision (OTS) or its predecessor, the Federal Home Loan Bank Board (FHLBB), has collected data from savings associations for, and published, the Monthly Median Cost of Funds (MMCOF) index. This index is available for adjusting the interest rate on adjustable rate mortgages (ARMs). The MMCOF has become less important to the mortgage lending industry since development of the Eleventh District Cost of Funds Index and the One Year Treasury Bill Rate Index. At the same time, as the OTS-regulated portion of the thrift industry has contracted, the MMCOF has been based on data from a significantly smaller number of institutions, representing a smaller portion of mortgage loans. The OTS is currently evaluating the direct cost to the industry of supplying data for use in calculating the MMCOF and the indirect cost to the industry of OTS committing resources used to calculate the MMCOF. The OTS is considering whether it should: cease publishing the MMCOF; or modify the scope of the MMCOF to increase its usefulness or reduce the cost to savings associations. Potential modifications include expanding the number of reporting institutions to include all OTS-re