The following statement was released today by Freddie Mac (OTCQB: FMCC) and is attributed to Timothy Kitt, Senior Vice President, Head of Pricing and Execution at Freddie Mac.

Freddie Mac supports the Alternative Reference Rate Committee’s (ARRC) recommendation to replace the London Interbank Offered Rate (LIBOR) index with a new index based on the Secured Overnight Financing Rate (SOFR). The transition will impact new purchases of hybrid ARMs once a SOFR-based product is implemented.

Freddie Mac will work closely with the ARRC, the Federal Housing Finance Agency, and other industry participants on a thoughtful and deliberate process to implement this recommendation within the home mortgage lending industry. We will also work with our clients, investors, and servicers to ensure a seamless transition for lenders and borrowers to SOFR-based ARMs by the end of 2021.