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.
Share to
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
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
- Ginnie Mae APM: Ineligibility of LIBOR Products for Single-Class MBS
- Ginnie
Mae APM: Limited Extension to Securitization Deadline for LIBOR Based Home
Equity Conversion Loans (HECM)
- FED
Final Rule to Implement the Adjustable Interest Rate (LIBOR) Act
- HUD
Final Rule on LIBOR Transition
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
