After years of preparation, banks saw a smooth transition to SOFR and other alternative rates.
CFPB: The updated rule will “facilitate the orderly transition of those consumer loans that currently use the Libor index to other indices.”
The Alternative Reference Rates Committee has approved a document containing best practice recommendations for using the CME Group’s Term SOFR rates, which the ARRC endorsed in 2021.
The Alternative Reference Rates Committee today released a paper formally stating its selections and recommendations as the “relevant governmental body” as they apply to the contractual provisions included in the ARRC’s recommended hardwired fallback language
The Depository Trust and Clearing Corporation this week announced the launch of the Libor Benchmark Replacement Index solution to support the industry’s transition from Libor benchmark rates to Secured Overnight Financing Rate Data and other new fallback rate indices by June 30.
The Federal Housing Administration this week 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.
Fannie Mae and Freddie Mac today announced plans to transition legacy Libor loans and securities to the Secured Overnight Financing Rate, the Alternative Reference Rates Committee’s preferred Libor alternative.
The Federal Reserve today adopted a final rule that implements the Adjustable Interest Rate Act by identifying benchmark rates based on the Secured Overnight Financing Rate that will replace Libor in certain financial contracts after June 30, 2023.
Most respondents indicated they have documented remediation plans in place and highlighted plans to actively transition their Libor loans.
The proposal would replace Libor references in certain contracts with the applicable Fed-selected replacement rate after June 30, 2023.