FHFA announces Fannie and Freddie LIBOR transition resources
On May 28, the FHFA announced the launch of new Fannie Mae and Freddie Mac (GSEs) websites (see here and here), which are designed to provide key resources for lenders and investors as the GSEs transition from LIBOR. The LIBOR Transition Playbook and frequently asked questions describe key transition milestones and recommended actions related to the GSEs’ transition from LIBOR to the Alternative Reference Rates Committee’s preferred Secured Overnight Financing Rate (SOFR) before the anticipated cessation of LIBOR at the end of 2021. The playbook provides resources related to, among other things, single-family adjustable-rate mortgages (ARMs) and mortgage-backed securities (MBS), as well as single-family credit risk transfer transactions, collateralized mortgage obligations, and multifamily ARMs, MBS and floating-rate loans, and credit risk transfers. The websites also provide details related to the transition of the GSEs’ Credit Risk Transfer (CRT) programs and their collateralized mortgage obligations.
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