Skip to main content

FHFA to FHLBanks: Drop LIBOR

Phil Hall
Sep 27, 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 Federal Housing Finance Agency (FHFA) has sent a letter to the 11 Federal Home Loan Banks directing them to cease purchasing investments in assets tied to LIBOR with a contractual maturity beyond Dec. 31, 2021.
 
The FHFA gave the banks a Dec. 31 deadline to cease these purchases. As of March 31, 2020, the Federal Home Loan Banks will be required to end all other LIBOR-based transactions involving advances, debt, derivatives, or other products with maturities beyond Dec. 31, 2021, with only very limited exceptions granted by FHFA.
 
“This is an important step in the transition away from LIBOR to a more robust reference rate,” said FHFA Director Mark Calabria said. “Beginning this process immediately and providing clear timelines will help the Federal Home Loan Banks manage the risks associated with LIBOR in the most safe and sound manner possible.”

 
Published
Sep 27, 2019
R.I. Mortgage Broker Pleads Guilty To $6M Ponzi Scheme

Decade-long scheme was used to finance a lavish lifestyle.

Regulation and Compliance
Sep 30, 2022
Fannie Mae Names Almodovar Its New CEO

Financial services veteran brings more than 30 years experience and a strong commitment to affordable housing.

Regulation and Compliance
Sep 29, 2022
OCC Fines Sterling Bank & Trust $6M Over Mortgage Fraud

Bank, parent company remain under criminal investigation by Justice Department and SEC.

Regulation and Compliance
Sep 27, 2022
Federal Court Shutters Sham Mortgage Relief Operation

FTC, California agency accuse 2 business owners of scam that cost consumers millions of dollars.

Regulation and Compliance
Sep 22, 2022
CFPB Seeks Input On Creating New Mortgage Products

Agency seeks information on refinances, mortgage products to promote competition and support household financial stability.

Regulation and Compliance
Sep 22, 2022
The Fed Raises Interest Rate 0.75% For The 3rd Time

Chairman said housing market may have to go through "a correction" to return to balance.

Regulation and Compliance
Sep 21, 2022