Skip to main content

MBA Publishes Primer on LIBOR Transition Issues

Phil Hall
Jan 24, 2019
The Mortgage Bankers Association (MBA) has published a primer that addresses potential transition issues ahead of the potential 2021 ending of the London Interbank Offered Rate (LIBOR)

The Mortgage Bankers Association (MBA) has published a primer that addresses potential transition issues ahead of the potential 2021 ending of the London Interbank Offered Rate (LIBOR).
 
Authored by the MBA LIBOR Outreach Committee, consisting of commercial mortgage market participants that use LIBOR-based reference indices in their operations. The new primer calls on companies that rely on LIBOR to follow these recommendations:
 
►Identify and assess existing LIBOR exposure in their portfolio;
►Prepare adequate contract fallback language for new floating rate loans being closed today;
►Review operational requirements;
►Encourage voluntary adoption by lenders and borrowers of the successor rate at such time as all key constituencies have agreed on the means and methods of transitioning to an alternative rate;
►Join the Federal Reserve ARRC email distribution for key LIBOR transition updates;
►Keep track through ARRC and ISDA regarding hedging products; and
►Manage international implications of a replacement index (for companies with international floating rate portfolios)
 
"MBA is committed to assisting member companies on the transition from LIBOR to a successor index," said Thomas Kim, MBA Senior Vice President of Commercial Real Estate Finance. "Our ongoing efforts on LIBOR transition involve active engagement with interested members, including commercial real estate finance firms and other market participants. Although the expected LIBOR transition is still a few years away, it's important that market participants begin considering the items presented in the primer. We are grateful to the members on MBA's Commercial/Multifamily LIBOR Outreach Committee as the industry prepares for what's next."

 
Published
Jan 24, 2019
ChainLogix Appoints New Vice President, Operations

Jeryl Graham hired to accelerate growth in title & mortgage services.

Industry News
Oct 15, 2021
JPMorgan Chase To Commit $8.4M To Improve Household Stability For The Underserved

JPMorgan Chase announced six organizations that will receive philanthropic capital as part of the firm’s $400 million five-year commitment to improve housing affordability and stability for Black, Hispanic and Latino, and other underserved households.

Community
Oct 15, 2021
SRE Mortgage Alliance 'Restructuring & Reorganizing'

UPDATE: Owner of technology-based wholesale residential mortgage lender in El Segundo to determine organization's future.

Wholesale
Oct 15, 2021
Ginnie Mae Issued Record MBS Volume In FY2021

The record $939 billion issued included nearly $73 billion in September.

Industry News
Oct 14, 2021
UWM Completes Test Of Cryptocurrency Mortgage Payments

United Wholesale Mortgage evaluated and accepted the first-ever cryptocurrency mortgage payment in September and an additional five payments in October from borrowers.

Industry News
Oct 14, 2021
Arvielo Re-Appointed To HUD Advisory Committee

Nationwide mortgage lender New American Funding’s Co-Founder and President Patty Arvielo has been re-appointed to serve on the U.S. Department of Housing & Urban Development's Housing Counseling Federal Advisory Committee.

Industry News
Oct 13, 2021