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GSEs Release LIBOR Transition Resources

The Federal Housing Finance Agency (FHFA) have announced that Fannie Mae and Freddie Mac (the Enterprises) have launched new websites that provide key resources for lenders and investors as the Enterprises transition away from the London Interbank Offered Rate (LIBOR). LIBOR is expected to stop being published at the end of 2021. The Enterprises’ websites contain information about resources and products, including the Enterprises’ jointly published LIBOR Transition Playbook and Frequently Asked Questions (FAQ).

“To protect our nation’s housing finance markets, FHFA has directed the entities we regulate to transition away from LIBOR. These resources will help market participants to likewise move away from LIBOR in a safe and sound manner,” said FHFA Director Mark Calabria.

Available at Fannie Mae and Freddie Mac’s websites, the Playbook describes key transition milestones and recommended actions for stakeholders to consider as they manage the upcoming transition away from LIBOR. Together with the accompanying FAQs, these tools will help participants plan and adapt business policies, procedures, and processes to support products linked to alternative reference rates, discontinue most LIBOR-indexed products by the end of 2020, and prepare for discontinuing the use of LIBOR as an index.

"Fannie Mae’s LIBOR Transition webpage is a resource for lenders and investors to access key updates and information during this historic shift in the markets," said Bob Ives, SVP and Treasurer, Fannie Mae. "Today’s announcement marks an important milestone in the transition from LIBOR to an alternative reference rate. We remain committed to ensuring a successful transition for our products, while we continue fulfilling Fannie Mae's mission during these uncertain times."

The Enterprises also announced today updates related to transitioning their Credit Risk Transfer (CRT) programs and their collateralized mortgage obligations (CMOs), including the cessation dates for new issuances indexed to LIBOR and the expected dates for new issuances indexed to the Secured Overnight Financing Rate (SOFR). Details of these important milestones are available on the Enterprises’ LIBOR Transition webpages.

About Author: Seth Welborn

Seth Welborn is a Reporter for DS News and MReport. A graduate of Harding University, he has covered numerous topics across the real estate and default servicing industries. Additionally, he has written B2B marketing copy for Dallas-based companies such as AT&T. An East Texas Native, he also works part-time as a photographer.

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