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News & Press: Industry News

Fannie and Freddie to Stop Buying LIBOR ARMs

Tuesday, February 18, 2020  
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The Federal Housing Finance Agency announced additional steps Fannie Mae and Freddie Mac are taking as they transition from the London Interbank Offered Rate (LIBOR), the world's most widely used interest rate benchmark:

  • New language will be required for single-family Uniform Adjustable Rate Mortgage (ARM) instruments closed on or after June 1, 2020.

  •  All LIBOR-based single-family and multifamily ARMs must have loan application dates on or before September 30, 2020 to be eligible for acquisition; and,

  • Acquisitions of single-family and multifamily LIBOR ARMs will cease on or before December 31, 2020.

Fannie Mae and Freddie Mac serve as members of the Alternative Reference Rates Committee (ARRC), which was established by the Federal Reserve Board and the Federal Reserve Bank of New York to facilitate the migration from LIBOR to Secured Overnight Financing Rate (SOFR).

California Land Title Association

1215 K Street #1816 Sacramento, CA 95814-3905
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