April 27, 2020
In February, we announced we’re transitioning from using the London Interbank Offered Rate (LIBOR) as an index to calculate interest for floating rate debt to the Secured Overnight Financing Rate (SOFR). We can now confirm we will be using the 30-day compounded SOFR average published by the Federal Reserve Bank of New York.
This index will be used for floating rate loans across all our product lines—Conventional, Targeted Affordable Housing and Small Balance Loans.
We can also confirm we will begin quoting SOFR-indexed floating rate loans by September 1.
As a reminder, here are key dates around the LIBOR transition to SOFR:
We will continue to update you as more details become available about our SOFR offerings and LIBOR cessation. In the meantime, please continue to reference our LIBOR Transition webpage, and send us an email with any specific questions.
We appreciate your partnership and look forward to a smooth transition.
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