FFIEC Releases Computational Tools for APRs, APYs

To help financial institutions comply with consumer protection rules, the Federal Financial Institutions Examination Council today released two computational tools for annual percentage rates and annual percentage yields.

The APR tool is designed to help banks verify APRs and reimbursement adjustments. The tool includes relevant finance charge and APR tolerances for verifying the accuracy of annual percentage rates and finance charges on loans secured by real estate or a dwelling. It can also be used to verify military annual percentage rates for loans subject to the Military Lending Act. Meanwhile, the APY tool can be used to verify APYs on consumer deposit account disclosures for the purposes of the Truth in Savings Act.