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.
ABA, state bankers associations offer recommendations for CRA rules revisions
As banking agencies consider amending the regulations that implement the Community Reinvestment Act, they should preserve the broader framework while making changes to better tailor supervision, increase regulatory thresholds and focus on lending, ABA and 45 state bankers...









