Also found in: Acronyms.

11th District Cost of Funds Index

An index of the interest rates paid on checking accounts and savings accounts in Arizona, California, and Nevada. This index measures the cost of funds for banks and some other financial institutions in the western United States; that is, the 11th District COFI measures what banks must pay to those who would offer them funding for their lending and other operations. The 11th District COFI is published on a monthly basis and is considered a lagging indicator of prevailing interest rates in the west.


See cost of funds index.


Cost-of-Funds Index, one of many interest rate indexes used to determine interest rate adjustments on an adjustable rate mortgage.

See Adjustable Rate Mortgage (ARM)/ARM Rate Indexes.

References in periodicals archive ?
He counseled a few customers to refinance out of COFI loans, but no one has ever asked for one.
COFI rates rise to the full contract rate after three months, and then fluctuate monthly.
First Federal customers are now sold on COFI themselves, without having a loan officer explain the product.
Because California had such a large housing demand, the low initial rates made COFI loans popular with Realtors and other housing players.
Although COFI interest rates are below fixed-rate mortgages and competitive with other ARMs, the reception these loans get outside the 11th Federal Home Loan Bank District can be described only as lukewarm.
If the mortgage bankers did a little more marketing and priced these loans differently, COFI ARMs could enjoy the same popularity in the rest of the country as they do in the West," says Gumbinger.
Roughly 80 percent of its lending business is in ARMs, and roughly half of its ARM business is in COFI mortgages.
While mortgage brokers and mortgage bankers carry some COFI inventory for customers who request it, there's not much call for it, Gumbinger says.
Competition from other ARMs has eroded the COFI market.
Mortgages based on short-term Treasuries and the London Interbank Offered Rate (LIBOR) or the Federal Funds rate are displacing COFI in popularity.
Consolidation may hurt the COFI market, says Zandi.
The loss of the two institutions also will affect how the COFI is calculated and how many institutions originate these loans.