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Arkms for mac1/10/2023 On December 31, 2020, Fannie Mae and Freddie Mac ceased issuing LIBOR-based credit risk transfers (CRT).įannie Mae and Freddie Mac have launched LIBOR transition websites that provide key resources for lenders and investors as the Enterprises transition away from LIBOR.On December 31, 2020, Fannie Mae and Freddie Mac ceased purchasing LIBOR-based ARMs.On November 9, 2020, Freddie Mac started accepting whole loan and MBS deliveries of single-family adjustable-rate mortgage (ARM) loans indexed to the SOFR.The details of the offering and the pricing for the different tranches are available inįreddie Mac announced that it priced its first multifamily K-Deals (K-F73 Certificates) indexed to SOFR but backed by LIBOR loans, and on December 9, 2020, it announced that it priced its first multifamily K-Deals (K-F95 Certificates) indexed to SOFR and backed by SOFR loans. The offering size was approximately $276 million. The offering size was $1.086 billion for the STACR REMIC 2020-DNA5 offering.įreddie Mac announced that it priced its first SOFR linked multifamily CRT offering on January 12, 2021. Freddie Mac announced that it priced its first SOFR linked Single-family CRT offering on October 16, 2020.Under the guidance of FHFA, effective October 1, 2020,įreddie Mac ceased issuing new LIBOR-indexed CMOs.Fannie Mae began issuing multifamily and single-family MBS backed by SOFR-indexed ARMs on Septemand October 23, 2020, respectively.This date was extended from its original date of March 31, 2020, and this extension did not cover option-embedded products.įannie Mae started accepting whole loan and MBS deliveries of single-family adjustable-rate mortgage (ARM) loans indexed to the SOFR.įannie Mae began quoting multifamily ARM loans indexed to SOFR but did not accept delivery on October 1, 2020.įreddie Mac began issuing quotes for multifamily SOFR-indexed floating rate loans on Septemand purchased its first SOFR-indexed loan at the end of September 2020. Effective June 30, 2020, the FHLBanks ceased entering into all other LIBOR transactions with maturities that extend beyond December 31, 2021, with only very limited exceptions granted by FHFA.On May 27, 2020, at the direction of FHFA, Fannie Mae posted aĪmendments to disclosures governing certain legacy LIBOR-indexed collateralized mortgage obligations (CMOs) that did not contemplate a permanent LIBOR cessation.Effective January 1, 2020, FHFA has prohibited the Banks from purchasing LIBOR-linked investments with maturities beyond December 31, 2021.Fannie Mae and Freddie Mac have ceased purchasing seasoned LIBOR-based ARMs.FHFA worked with Fannie Mae and Freddie Mac to develop the parameters of a SOFR-based adjustable-rate mortgage (ARM) and to develop more robust “fallback language” for ARMs that describe how a replacement rate would be selected in the event of the cessation of an ARM’s reference rate. The FHFA’s regulated entities (Fannie Mae, Freddie Mac, and the FHLBanks) are now regular issuers of SOFR-indexed debt. Fannie Mae, Freddie Mac, and the FHLBanks (through the FHLBank of New York) all serve as members of the ARRC.įHFA is working with its regulated entities to monitor their exposure to LIBOR as they execute their transition plans away from LIBOR. On March 5, 2021, the FCA announced that the publication of 1-week and 2-month US dollar LIBOR will cease after December 31, 2021, and the publication of all other US dollar LIBOR settings will cease or be deemed unrepresentative after June 30, 2023.įHFA serves as an ex officio non-voting member of theĪlternative Reference Rates Committee (ARRC) established by the Federal Reserve Board and the New York Federal Reserve Bank to facilitate the migration away from LIBOR to the Secured Overnight Financing Rate (SOFR), the rate selected by ARRC as a more robust transactions-based replacement for LIBOR in the U.S. Which could result in a declaration that LIBOR is no longer representative of market activity. Since 2017, the Financial Conduct Authority, the United Kingdom-based regulator of LIBOR, has been warning market participants that it will stop compelling panel banks to submit LIBOR quotes beginning in 2022, Intercontinental Exchange London Interbank Offered Rate (ICE LIBOR), the most widely used interest rate benchmark in the world. Note: Sign up at bottom of the page to subscribe and be notified of updates.įannie Mae, Freddie Mac, and the Federal Home Loan Banks (FHLBanks) all have financial instruments that reference
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