Jon David D. Langlois discussed "LIBOR transition: Preparations for legal professionals" at a Mortgage Bankers Association webinar
One of the most significant transitions to occur in financial markets is the move to phase out LIBOR as the predominant interest rate benchmark. This transition, which will have major impacts on the mortgage industry - including the market for adjustable-rate mortgages - is moving full steam ahead, as LIBOR is expected to be discontinued at or near the end of 2021. Market participants of all types and sizes need to be prepared to handle changes that will be necessary for both new originations and legacy products.
In this session, participants addressed the critical role to be played by legal professionals at mortgage originators, mortgage servicers, and other companies in the mortgage finance ecosystem. The legal risks associated with the LIBOR transition are both numerous and significant. Industry participants need to understand these risks and prepare for them well in advance of critical transition implementation dates.