Fannie Mae issued a Servicing Notice (Notice), announcing the replacement index for the Cost of Funds Index. As previously communicated, the Federal Home Loan Bank of San Francisco will cease publication of the 11th District Monthly Weighted Average Cost of Funds Index (COFI) after the December 2021 publication. Per the Notice, the replacement index used for the servicing of legacy COFI mortgage loans will be the Enterprise 11th District COFI Replacement Index. Freddie Mac will publish the replacement index on the last business day of every month, beginning with the January 2022 index (which will be published on February 28, 2022). With respect to Fannie Mae COFI ARM loans where the note contained the standard index replacement language for determining the index if COFI was no longer available, the Enterprise 11th District COFI Replacement Index must be used to determine the new rate for interest rate adjustments with a lookback date that occurs after January, 2022.
Click to view the Fannie Mae Servicing Notice (06-09-21): https://www.tenaco.com/wp-content/uploads/2021/06/Fannie-Mae-Servicing-Notice-06-09-21.pdf
