Notes on the updated OPUC series:

a. OPUC stands for "originator profits and unmeasured costs" as discussed in Fuster et al. (2013).

b. Series is a monthly (4-week moving) average.

c. The OPUC calculation uses the same assumptions on multiples as the baseline series in the paper, i.e. base servicing is valued at 5x, excess servicing at 4x, and the buydown multiple is 7x.

d. The calculation uses the latest effective g-fee on new single-family acquisitions as published in Fannie Mae’s 10-Q filing. When future g-fee increases are announced, we assume that they affect OPUC immediately. When a new 10-Q filing becomes available, previous OPUC values may be affected by the change in the assumed g-fee.

e. Please refer to Section 3 of Fuster et al. (2003) for other assumptions and data sources.

f. The series will be updated monthly and will be available at this link: www.ny.frb.org/research/epr/2013/1113fust.html

g. Data on average origination fees and discount points from Freddie Mac was discontinued in November, 2022: https://www.freddiemac.com/research/insight/20221103-freddie-macs-newly-enhanced-mortgage-rate-survey. Going forward we will use the long-run average value of this series from 2003 to 2022 of around 0.62 percentage points.

Reference:
Andreas Fuster, Laurie Goodman, David Lucca, Laurel Madar, Linsey Molloy, and Paul Willen, "The Rising Gap between Primary and Secondary Mortgage Rates", Federal Reserve Bank of New York Economic Policy Review, Volume 19, Number 2, December 2013.