Skip to main content

FHFA Updates GSE Transition From LIBOR

Phil Hall
Feb 06, 2020
Photo credit: Getty Images/krblokhin

The Federal Housing Finance Agency (FHFA) has updated the efforts being undertaken by Fannie Mae and Freddie Mac to transition from the London Interbank Offered Rate (LIBOR).
 
The FHFA noted new language will be required for single-family Uniform Adjustable Rate Mortgage (ARM) instruments closed on or after June 1, adding that all LIBOR-based single-family and multifamily ARMs must have loan application dates on or before Sept. 30 to be eligible for acquisition. Acquisitions of single-family and multifamily LIBOR ARMs will cease on or before Dec. 31.
 
“These steps represent important milestones in the Enterprises' transition away from LIBOR to a more robust reference rate.  We will continue to monitor exposure to LIBOR and ensure the Enterprises manage the risks associated with the transition in a safe and sound manner," said FHFA Director Mark Calabria. 
 
Last fall, the FHFA 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 New URLA – What’s the Big Deal?

Lenders will need to update their technology stack to comply with the redesigned URLA.

Regulation and Compliance
Jun 14, 2021
Texas State Legislators Looks To Protect Reverse Mortgage Borrowers

A Texas House Bill has been introduced to prevent false, misleading or deceptive advertising by reverse mortgage lenders.

Reverse
Jun 02, 2021
Could Prudential Standards for Nonbank Mortgage Servicers be Eased?

From The Desk Of The “Om-Bobs-Man”

Regulation and Compliance
May 31, 2021
Get Ready to Duck and Cover

After years of hands-off attitude by regulators, a new wave of mortgage enforcement is building. Expect a tsunami.

Regulation and Compliance
May 13, 2021