Relief for Homeowners and Renters
We’re extending help to millions of homeowners and renters facing financial hardships as a result of COVID-19.
As our transition to implementing the SOFR index nears, we’d like to provide clarity on our approach to interest rate caps for SOFR-based loans.
Borrowers with a SOFR-based loan will be permitted, on a temporary basis, to purchase a LIBOR-based cap agreement instead of a SOFR-based cap agreement. While Freddie Mac’s requirements for interest rate caps are not expected to change if a SOFR-based cap agreement is purchased, additional requirements will apply if the borrower elects to purchase a LIBOR-based cap. The anticipated additional requirements if a LIBOR-based cap is purchased for a SOFR-based loan include the following:
If you have questions, or feedback, please send us an email to MFLIBOR@freddiemac.com.
We appreciate your partnership and look forward to a smooth transition.
Have a comment or question? Email us to let us know what's on your mind.