Freddie Mac and Fannie Mae, under the guidance of the Federal Housing Finance Agency (FHFA), have jointly published new resources to help the housing finance industry transition from the use of the London Interbank Offered Rate (LIBOR) indexed ARMs.

The following resources are now available on Freddie Mac’s new LIBOR Transition website:

You’ll also find other resources in this new transition page, including quick access to the Alternative Reference Rates Committee (ARRC) and their materials on the Secured Overnight Financing Rate (SOFR). SOFR is the index that the ARRC has recommended the U.S. financial market should use in place of LIBOR.

In addition to the new joint GSE resources, we are pleased to announce a SOFR-Indexed ARM product page and our Ready. Set. SOFR! video to support your LIBOR transition activities.

  • The product page provides eligibility, underwriting and delivery requirements for SOFR-indexed ARMs.
  • The video with Tim Kitt, senior vice president, head of Pricing and Execution, highlights key updates in selling SOFR-Indexed ARMs to Freddie Mac.

We continue to work closely with FHFA, the ARRC and others in the industry to help ensure a smooth transition away from LIBOR. As we undertake these activities, we welcome your feedback so we can better understand the impacts of the transition to your business. Your insights will help us identify needs that must be addressed to make this transition successful.