Fannie Mae issued a Servicing Notice (Notice), announcing the replacement index for legacy single-family LIBOR ARM loans. Per the Notice, the replacement index for legacy single-family LIBOR ARM loans is a spread-adjusted term Secured Overnight Financing Rate (SOFR) administered by the CME Group Benchmark Administration, LTD and published by Refinitiv Limited. The Notice includes the replacement rates for 1-month, 6-month and 1-year single-family LIBOR arm loans. Servicers must use the all-in, no floor rate (which includes the applicable tenor spread adjustment). Servicers must use the replacement index beginning July 1, 2023.
Click to view the Fannie Mae Legacy LIBOR Replacement Index Servicing Notice: https://www.tenaco.com/wp-content/uploads/2023/01/Fannie-Mae-Legacy-LIBOR-Replacement-Index-Servicing-Notice-01-25-23.pdf
