Business and Personal Finance Dictionary

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• COST OF DEPOSIT INDEX (CODI)
  
  The Cost of Deposit Index (CODI) is one of several indexes commonly used to set the adjustment amount of an adjustable rate mortgage (ARM). CODI is typically calculated as a 12-month moving average of three-month certificate of deposit, or CD, yields as reported by the Federal Reserve Board. Lenders market CODI as an attractive pricing index in times of rising rates. The length of the 12-month moving average, plus the tendency of banks to drag their feet in raising CD rates both dampen the responsiveness of the index.
  
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