The Federal Housing Administration today published a final rule removing Libor as an approved index for adjustable-rate mortgages and replacing it with the Secured Overnight Financing Rate as the approved index for newly originated forward ARMs, effective March 31. According to the agency, the rule also codifies the same changes made for newly originated reverse home equity conversion mortgage ARMs, makes clarifying regulatory changes to the requirements for monthly adjustable HECM ARMs, and establishes a 10 percentage points maximum lifetime adjustment cap for monthly adjustable HECM ARMs.
Congress sends budget bill to president with numerous ABA-backed provisions
Included in the bill were several ABA-supported tax provisions related to banks, including a modified version of the ABA-advocated ACRE Act and the permanent extension of the Section 199A pass-through deduction rate of 20%.