Reference Rate Reform (LIBOR)

Member Resource

MBA members can download an unlocked copy of the Adjustable-Rate Mortgage Disclosure. Add your logo,  change the colors, make it your own and share with your clients. 

Download the unlocked flyer

Join a Working Group

MBA has working groups in both the single-family and commercial/multifamily markets that are dedicated to all elements of the transition away from LIBOR.

To join the single-family working group, please contact Dan Fichtler.

To join the commercial/multifamily working group, please contact Andrew Foster.

Prepare your customers for the impending changes with our Single-Family ARM Disclosure Template.

Overview: The London Interbank Offered Rate (LIBOR), the index used for many adjustable-rate mortgage products, may expire at the end of 2021, or perhaps sooner. MBA and its members have developed a template for a disclosure that lenders can provide to customers seeking new single-family products that are indexed to LIBOR. 

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Policy Spotlight – LIBOR Transition: Are you Ready?

The London Interbank Offered Rate, or LIBOR, serves as the primary interest rate benchmark across numerous financial products, including adjustable-rate mortgages. Due to structural weaknesses in the benchmark that made it susceptible to manipulation during the crisis, regulators have called for markets to transition to more resilient benchmarks in the near future. As a result, LIBOR is likely to be discontinued in late 2021, or perhaps even sooner. The mortgage industry will need to develop suitable alternatives for new originations in the single-family and commercial/multifamily markets, as well as for the servicing of existing loans that are indexed to LIBOR. Ready or not, the transition is happening and mortgage lenders need to prepare. MBA has been a leader on these fronts, including through its recent work:

  • Creating a consumer disclosure template for single-family lenders to inform potential borrowers about the transition
  • Developing a second disclosure template to be released shortly to prepare borrowers with legacy ARMs for an index change
  • Developing a primer on key challenges facing commercial mortgage market participants
  • Collecting survey data on commercial/multifamily market participants' preparedness for the transition
  • Continuing to participate actively on a number of working groups formed by the public-private coalition guiding the transition

Evolving Issues for LIBOR Transition and Commercial Mortgage Market Challenges

A broad range of industries rely on LIBOR to conduct business and will be impacted by this change. The commercial and multifamily real estate finance industry will be affected, given the large amount of floating rate lending that references the LIBOR index in pricing loans.

Read the full primer

Estimates of Adjustable and Fixed-rate Commercial Real Estate Mortgage Debt Outstanding

Estimates of Adjustable and Fixed-rate Commercial Real Estate Mortgage Debt Outstanding


Within commercial real estate finance (CREF) markets, a LIBOR transition would have broad - and varied - impacts. Adjustable‐rate mortgages are estimated to make up just less than one‐third of the total balance of mortgage debt outstanding. The bulk of that adjustable‐rate debt is held on bank balance sheets, but floating rate debt also makes up roughly 30 percent of Freddie Mac's securitized multifamily debt, and 15 percent of the mortgages guaranteed by Fannie Mae. In the CMBS market, only one percent of conduit debt is floating rate, but so is 40 percent of single‐asset/single‐borrower mortgage debt, and 96 percent of multi-borrower floater debt. Ninety‐one percent of mortgages backing CRE CLOs - driven by investor‐driven lenders like mortgage REITs and Debt funds - is floating rate, as is seven percent of commercial mortgage debt held by life companies.