LIBOR Transition
The transition away from the London Interbank Overnight Rate (LIBOR) as a viable index for floating-rate debt is in progress. MBA supports business and policy efforts to mitigate the disruption arising from that transition.
MBA is working closely with public and private sector entities to provide our members with the resources they need to ensure a smooth transition. The LIBOR transition, or the date that financial institutions must cease using LIBOR references, is June 30, 2023, and will impact institutions of all types and sizes, including lenders, servicers, service providers, and others operating in the single-family and commercial/multifamily markets.
NOTE: There is pending legislation in Congress that would facilitate the LIBOR transition towards the new benchmark rate, the Secured Overnight Financing Rate (SOFR). MBA policy staff continues to engage with policymakers in Congress to ensure that any legislation on the LIBOR transition would support residential and commercial lenders by avoiding any undue burdens or business interruptions associated with a benchmark rate transition.
Recent MBA Activity Related to LIBOR
General LIBOR Transition Resources
- Alternative Reference Rates Committee
- Alternative Reference Rates Committee implementation checklist
- Alternative Reference Rates Committee SOFR Starter Kit
- CFPB's CHARM booklet (updated)
- CFPB LIBOR Transition FAQs
- Department of Treasury/IRS tax relief regulations
- FASB hedge accounting notice
- FHFA LIBOR Transition page
- Fannie Mae LIBOR Transition page
- Freddie Mac LIBOR Transition page
- ICE Consultation on Extended Publication of LIBOR
Market-Focused LIBOR Transition Resources
Commercial/Multifamily LIBOR Resources
Residential LIBOR Resources
- MBA Notice Template for Communications with Existing LIBOR ARM Borrowers
- MBA Letter Template for Communications with Existing LIBOR ARM Borrowers
- MBA Template for Communications with New LIBOR ARM Borrowers
- Alternative Reference Rates Committee LIBOR ARM Transition Resource Guide
- Alternative Reference Rates Committee white paper on SOFR-indexed ARMs
- Alternative Reference Rates Committee recommended contractual fallback language
- Freddie Mac Single-Family LIBOR transition announcement
- Ginnie Mae APM: Ineligibility of LIBOR Products for Single-Class MBS
MBA LIBOR Transition Webinars, Recordings and Presentations
- LIBOR Transition for Loan Originators - October 15, 2020
- LIBOR Transition Servicing Issues - September 18, 2020
- LIBOR Transition: Preparations for Legal Professionals - June 16, 2020
- LIBOR Transition: Update for Tax and Accounting Professionals - May 29, 2020
- LIBOR 101: Transition Basics for the Single-Family Market Webinar recording, Webinar Slide presentation — April 16, 2020
