March 10, 2020
UMDP Updates to Support SOFR ARM Index Transition
With guidance from the Federal Housing Finance Agency, Freddie Mac and Fannie Mae (GSEs) have announced that they will no longer purchase adjustable rate mortgage (ARM) products indexed to the London Interbank Offered Rate (LIBOR) on and after January 1, 2021.
The GSEs are also introducing a suite of ARMs indexed to a 30-day average of the Secured Overnight Financing Rate (SOFR) that they will start purchasing sometime during the second half of 2020.
To support this transition, the GSEs are sharing updates to certain datasets under the Uniform Mortgage Data Program® (UMDP®) with new SOFR data.