FFIEC Rate Spread Calculator
function calculateRateSpread() {
var lenderRate = parseFloat(document.getElementById("lenderRate").value);
var benchmarkRate = parseFloat(document.getElementById("benchmarkRate").value);
var margin = parseFloat(document.getElementById("margin").value);
var resultElement = document.getElementById("rateSpreadResult");
var explanationElement = document.getElementById("explanation");
if (isNaN(lenderRate) || isNaN(benchmarkRate) || isNaN(margin)) {
resultElement.innerHTML = "Please enter valid numbers for all fields.";
explanationElement.innerHTML = "";
return;
}
// The FFIEC Rate Spread is often calculated as Lender's Rate – Benchmark Rate.
// The 'Margin' input in this context is likely the Lender's Rate minus the Benchmark Rate,
// as defined in the context of HMDA reporting.
// If the user provides Lender's Rate and Benchmark Rate, we calculate the spread.
// If the user provides Lender's Rate and Margin, we can infer Benchmark Rate, but the prompt
// implies a direct calculation of the spread itself using the provided inputs.
// For clarity and to directly address "rate spread calculator", we will calculate
// Lender's Rate – Benchmark Rate, and also check if this matches the provided margin.
var calculatedRateSpread = lenderRate – benchmarkRate;
var rateSpreadMessage = "Rate Spread: " + calculatedRateSpread.toFixed(2) + "%";
var explanationMessage = "";
if (Math.abs(calculatedRateSpread – margin) < 0.01) { // Allow for minor floating point inaccuracies
explanationMessage = "The calculated rate spread (" + calculatedRateSpread.toFixed(2) + "%) matches the provided margin (" + margin.toFixed(2) + "%). This value is critical for HMDA reporting, indicating the difference between the loan's APR and a benchmark rate. A higher rate spread may trigger further scrutiny.";
} else {
explanationMessage = "The calculated rate spread (" + calculatedRateSpread.toFixed(2) + "%) does not exactly match the provided margin (" + margin.toFixed(2) + "%). Please verify your inputs. The calculated rate spread is the difference between the Lender's Rate and the Benchmark Rate, used for HMDA reporting.";
}
resultElement.innerHTML = rateSpreadMessage;
explanationElement.innerHTML = explanationMessage;
}
.rate-spread-calculator {
font-family: sans-serif;
border: 1px solid #ccc;
padding: 20px;
border-radius: 8px;
max-width: 500px;
margin: 20px auto;
background-color: #f9f9f9;
}
.rate-spread-calculator h2 {
text-align: center;
color: #333;
margin-bottom: 20px;
}
.calculator-inputs .form-group {
margin-bottom: 15px;
display: flex;
align-items: center;
}
.calculator-inputs label {
display: block;
margin-bottom: 5px;
flex: 1;
margin-right: 10px;
font-weight: bold;
color: #555;
}
.calculator-inputs input[type="number"] {
padding: 8px;
border: 1px solid #ccc;
border-radius: 4px;
width: 100px; /* Fixed width for input */
box-sizing: border-box;
}
.calculator-inputs span {
margin-left: 5px;
font-weight: bold;
}
.calculator-inputs button {
display: block;
width: 100%;
padding: 10px;
background-color: #007bff;
color: white;
border: none;
border-radius: 4px;
cursor: pointer;
font-size: 16px;
margin-top: 15px;
}
.calculator-inputs button:hover {
background-color: #0056b3;
}
.calculator-results {
margin-top: 25px;
border-top: 1px solid #eee;
padding-top: 15px;
}
.calculator-results h3 {
color: #333;
margin-bottom: 10px;
}
#rateSpreadResult {
font-size: 1.2em;
font-weight: bold;
color: #28a745;
margin-bottom: 10px;
}
#explanation p {
color: #666;
font-size: 0.9em;
line-height: 1.4;
}