LIBOR Transition

The transition away from the London Interbank Overnight Rate (LIBOR) as a viable index for floating-rate debt took place in June 2023. MBA successfully advocated for business and policy efforts that helped mitigate the disruption arising from that transition.

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The LIBOR transition, or the date that financial institutions needed to cease using LIBOR references was June 30, 2023, and the transition impacted institutions of all types and sizes, including lenders, servicers, service providers, and others operating in the single-family and commercial/multifamily markets.

In December 2022, the Federal Reserve issued a final rule implementing the US Adjustable Interest Rate (LIBOR) Act by identifying benchmark rates based on SOFR (Secured Overnight Financing Rate) that replaced LIBOR in certain financial contracts after June 30, 2023.

Recent MBA Activity Related to LIBOR

Market-Focused LIBOR Transition Resources