We also noted that Fannie Mae and Freddie Mac (the GSEs) were expected to issue guidance that SOFR was an appropriate substitute for LIBOR and provide transition steps. Fannie Mae issues first SOFR-based floating rate note. As previously announced, Fannie Mae and Freddie Mac jointly released a LIBOR Transition Playbook and FAQs providing guidance and timelines regarding the transition from the LIBOR to Secured Overnight Financing Rate (“SOFR”) index. The three-tranche $6 billion SOFR debt transaction is scheduled to settle on July 30, 2018. WASHINGTON, DC – Today, Fannie Mae announced and priced its third Secured Overnight Financing Rate (SOFR) offering, an 18-month $2.0 billion issuance. September 30, ... Mac to purchase LIBOR-indexed floating-rate and hybrid loans, regardless of the loan application or the date of the note. adjusted index based on the Secured Overnight Financing Rate (SOFR), the ARR’s recommended alternative to USD LIBOR. Plan Number. Along with Fannie Mae and Freddie Mac, … This was the first-ever issuance of a SOFR security. Freddie Mac In a bulletin [2] issued on February 5 th , 2020, Freddie Mac announced that it will no longer purchase any LIBOR-indexed ARM with an application-received date on and after … Fannie Mae began pricing Multifamily SOFR ARM products on September 1, 2020 and began accepting delivery of Multifamily SOFR ARMs on October 1. Additionally, both agencies plan to no longer offer LIBOR products or accept LIBOR-based collateral by the end of 2020. Fannie Mae will provide further information relating to multifamily SOFR ARM prefixes and subtypes, along with confirmation of the 30-day SOFR index in the coming months. April: Fannie Mae and Freddie Mac released details about their adjustable-rate mortgage (ARM) products indexed to the 30-day Average SOFR, including eligibility, underwriting, and delivery requirements for residential SOFR-based ARMs. Aleksandrs Rozens 202-752-7916. The GSEs will provide a future announcement concerning the specific SOFR Index or Indices to be used for eligible SOFR ARM Notes. Effective January 3, 2022, the mortgage industry will cease using the long-standing LIBOR and, instead, adopt the new Secured Overnight Funding Rate (SOFR). SOFR-based MBS. Both Fannie Mae and Freddie Mac plan to begin issuing SOFR-referenced CMOs this summer and will cease issuance of LIBOR-based CMOs by Q4 2020. Note:Fannie Mae uses a 30-day average of the SOFR index as published by the Federal Reserve Bank of New York. The quarterly interest Notes for regularly amortizing mortgages include the Fannie Mae/Freddie Mac Uniform Fixed-Rate Notes and the Fannie Mae/Freddie Mac Uniform Adjustable-Rate Notes and other notes that Fannie Mae has developed for: specific ARM plans (including those for Texas Section 50(a)(6) mortgages), biweekly payment mortgages, growing-equity mortgages. Fannie Mae began accepting delivery of SOFR-indexed ARMs. Barclays Capital Inc., Nomura Securities International, Inc., and TD Securities USA are the lead managers on this inaugural transaction. OCT CME begins clearing SOFR swaps using SOFR PAI and discounting. You should be satisfied that they are suitable for you in light of your circumstances and financial position. Fannie Mae. LIBOR-Based MBS . Twenty-two institutions have participated, half with multiple issues, for a total of 99 outstanding FRN s at the start of May 2019. These two new 3/6 SOFR programs: FHLM Freddie Mac (FHLMC) 3/6 SOFR ARM – 2/1/5 (program 114236) FNMA Fannie Mae 3/6 SOFR ARM – 2/1/5 (program … With this milestone, our objective is to accelerate the development of the SOFR market and we encourage other issuers in the debt markets to follow," said Nadine Bates, Senior Vice President and Treasurer of Fannie Mae. 12/2020 **Note: Fannie Mae will still be issuing LIBOR PFP pools in Q1 2021 Enter the GSE s. Throughout 2019, a growing population of banks and corporate issuers were responsible for about half of all SOFR-linked notes. Freddie Mac began accepting deliveries of Single-Family ARM loans indexed to SOFR as of If you have additional questions, Fannie Mae customers can visit Ask Poli to get information from other Fannie Mae published sources. Prepared to issue . Bates, Fannie Mae: We were confident that 2a-7 money funds would be the primary investors, but were pleased on both our first and second Sofr issuance to see it expand beyond that. Fannie Mae, Freddie Mac, and the Federal Home Loan Banks ... (SOFR) Securities (7/26/2019) Fannie Mae Announcement: Purchase of Certain LIBOR Adjustable-Rate Mortgage Loans (5/27/2019) Product Description. 1. Nothing in this press release constitutes advice on the merits of buying or selling a particular investment. 04931 - ARM 5/5 Loan: 30-Day Average SOFR 30-Day Average SOFR Compounded average of SOFR over a specified interest period of 30 days. Additionally, while the loan lifetime cap will stay at 5 percent for Fannie Mae, the Freddie Mac cap will be 5 percent. "As a member of the Federal Reserve's Alternative Reference Rate Committee, we are honored to demonstrate our support to the ARRC in its tremendous efforts to help develop an alternative to USD LIBOR.". Issuance of the first-ever SOFR notes. Fannie Mae, Credit Suisse, Barclays, and the World Bank have each sold various types of SOFR-linked debt previously. On February 5, 2020, Fannie Mae and Freddie Mac (the “GSEs”) announced updates regarding adjustable-rate mortgage (“ARM”) products in anticipation of the transition away from the London Interbank Offered Rate (“LIBOR”). Details on our eligibility, underwriting, pricing and delivery requirements also will be announced in a future Single-Family Seller/Servicer Guide update in 2020. MULTISTATE FIXED/ADJUSTABLE RATE NOTE—30-day Average SOFR Form 3442 04/20 — Single Family — Fannie Mae / Freddie Mac Uniform Instrument (page 2 of 5) Beginning with the first Change Date, my interest rate will be based on an Index that is calculated and Treasury floating-rate notes may be added to the lexicon helping drive derivatives volume and adoption of SOFR. New standard SOFR Programs, Notes, and Riders: New FNMA/FHLMC SOFR programs, notes, and riders have been created in ConformX. Note: Sign up at bottom of the page to subscribe and be notified of updates. Freddie Mac In a bulletin issued on 5 February 2020, Freddie Mac announced that it will no longer purchase any LIBOR-indexed ARM with an application-received date on and after 1 October 2020. and issuance of . In response to the ARR’s release of the ARMs fallback language, Fannie Mae and Freddie Mac announced that they plan to publish updates to their uniform ARM notes in the first quarter of 2020. Fannie Mae began accepting deliveries of Single-Family ARM loans indexed to SOFR beginning August 3, 2020. In preparation for publishing averages of SOFR, the New York Fed published a consultation Opens in a new window of SOFR averages and SOFR index, and is requesting public comment by December 4, 2019. For more information on SOFR ARMs, see WBK’s article on LIBOR transition milestones. Matthew Classick 202-752-3662. floating rate notes indexed to the Secured Overnight Financing Rate (SOFR). 09-20 It featured 3 tranches: 6-month $2.5 billion at SOFR + 8 bps; 12-month $2.0 billion at SOFR + 12 bps; 18-month $1.5 billion at SOFR + 16 bps SOFR, which was developed by the Federal Reserve Bank of New York as a dollar-market alternative to the beleaguered London interbank offered rate (LIBOR), has been gaining traction recently with financial institutions. Multifamily SOFR-Based CRT . and issuance of . The floating rate notes, offered in three maturities, were met with strong investor demand from a broad and diverse investor base. Single-Family . Guide Resources For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. Third SOFR Offering Grows Investor Base. Updated the “as of date” for the $0.9 billion outstanding CRT notes indexed to one-month LIBOR from June 30, 2020 to September 30, … specific ARM plans (including those for Texas Section 50(a)(6) mortgages), Fannie Mae/Freddie Mac Uniform Instruments, Fannie Mae Uniform Instruments (marked with anÂ. In the eight months since Fannie Mae issued the first SOFR FRN s, issuance has topped $100 billion (bln) face value. generate the notes and riders with this language currently exists in Encompass via field ID ARM.FlrVerbgTyp. Uniform Instruments are the Fannie Mae/Freddie Mac and Freddie Mac Notes, Riders, and Security Instruments (Deeds of Trust and Mortgages) used when originating Single-Family residential mortgage loans, in all States and U. S. Territories, as identified in the List of Single-Family Uniform Instruments provided on this website and also identified in Guide Exhibit 4. Similarly, in the US, Fannie Mae (“FNMA”) issued $6 billion of SOFR-linked bonds2 on July 26th, the first of its kind. Multifamily SOFR-based ARMs. The $6 billion FNMA issuance was offered in three maturities consisting of six-month notes priced at SOFR+8 bps, 12-month notes at SOFR+12bps, and 18-month notes at SOFR+16bps. Multistate Fixed/Adjustable-Rate Note - 30-day Average SOFR, Multistate Fixed/Adjustable-Rate Note - 1 Year Treasury Index, Multistate Fixed/Adjustable-Rate Note - 1 Year Treasury Index - Convertible, Multistate Fixed/Adjustable-Rate Note - WSJ One-Year LIBOR, Multistate Adjustable-Rate Note - 30-day Average SOFR, Multistate Adjustable-Rate Note - ARM 5-1, New Hampshire Adjustable-Rate Note - ARM 5-1, Pennsylvania Adjustable-Rate Note - ARM 5-1, West Virginia Adjustable-Rate Note - ARM 5-1, Puerto Rico Adjustable-Rate Note - ARM 5-1, Multistate Adjustable-Rate Note - ARM 5-2, New Hampshire Adjustable-Rate Note - ARM 5-2, Pennsylvania Adjustable-Rate Note - ARM 5-2, West Virginia Adjustable-Rate Note - ARM 5-2, Puerto Rico Adjustable-Rate Note - ARM 5-2, Multistate Adjustable-Rate Note - ARM Plans 721/521 & 652/791, Multistate Adjustable-Rate Note - 3 Year ARM, Multistate Adjustable-Rate Note - ARM Plan 650, Multistate Convertible Adjustable-Rate Note - 1 Year Treasury Index, Multistate Adjustable-Rate Note - 5 Year ARM, Multistate Adjustable-Rate Note - WSJ One-Year LIBOR, Multistate Convertible Adjustable-Rate Note - WSJ One-Year LIBOR, Texas Home Equity Note Fixed-Rate - First Lien, Texas Home Equity Fixed/Adjustable-Rate Note - 30-day Average SOFR, Texas Home Equity Fixed/Adjustable-Rate Note - 1 Year Treasury Index - First Lien, Texas Home Equity Fixed/Adjustable-Rate Note - WSJ One-Year LIBOR, Texas Home Equity Convertible Fixed/Adjustable-Rate Note - WSJ One-Year LIBOR, Fannie Mae/Navajo Nation - Single-Family - Mortgage. SOFR Transaction Marks Milestone for Debt Markets. Each new program has ARM Index (field 2278) set to “SOFR”. The GSEs have updated ARM notes and riders to include the fallback language recommended by the Alternate Re The three-tranche $6 billion SOFR debt transaction is scheduled to settle on July 30, 2018. We partner with lenders to create housing opportunities for families across the country. Further, Fannie Mae’s margin on SOFR-based single-family ARMs will have a maximum of 3 percent, and Freddie Mac’s margin will have a minimum of 1 percent and a maximum of 3 percent. and. Standard Conventional ARM Plans To qualify as a Fannie Mae standard conventional ARM, the ARM must have all of the characteristics specified in the Standard ARM Plan Matrix for the specific ARM plan. Schedule 2 to Multifamily Loan and Security Agreement - Summary of Loan Terms (Interest Rate Type -ARM 7/6 (SOFR)). "We are proud to lead the market in issuing this landmark transaction. Fannie Mae will provide further information relating to Multifamily SOFR ARM Prefixes and Subtypes, along with confirmation of the 30-day SOFR index in the coming months. As you know, Fannie Mae is a large investor in Treasury securities. You should not deal in securities unless you understand their nature and the extent of your exposure to risk. LIBOR-Based ARMs. On February 5, 2020, Fannie Mae issued Lender Letter LL-2020-01 , and Freddie Mac issued Bulletin 2020-1 , both of which included the following announcements and key dates: Notes for regularly amortizing mortgages include the Fannie Mae/Freddie Mac Uniform Fixed-Rate Notes and the Fannie Mae/Freddie Mac Uniform Adjustable-Rate Notes and other notes that Fannie Mae has developed for: This page provides downloadable copies of standard and negotiated instruments, including: Get answers to your policy and guide questions, straight from the source. WASHINGTON, DC – Today, Fannie Mae issued the market's first-ever Secured Overnight Financing Rate (SOFR) securities. This press release does not constitute an offer to sell or the solicitation of an offer to buy securities of Fannie Mae. 02255 - ARM 7/6 Loan: 1-month LIBOR LIBOR … 2018 Secured Overnight Financing Rate (SOFR) Security Aggregate Investor Distribution, Numbers may not foot due to rounding* As of July 26, 2018. SOFR Transaction Marks Milestone for Debt Markets. 04933 - ARM 7/6 Loan: 30-Day Average SOFR 30-Day Average SOFR Compounded average of SOFR over a specified interest period of 30 days. Ellie Mae also will be updating plan codes and audit message to coincide with this requirement. purchases of . However, the 11 Federal Home Loan Banks (FHLB s), representing over 7000 local financial institutions who provide US housing loans, reached as high as 60-70% of the notional total.As overall borrowing slowed in winter 2020, … Any investment decision as to any purchase of securities referred to herein must be made solely on the basis of information contained in Fannie Mae's applicable Offering Circular, and no reliance may be placed on the completeness or accuracy of the information contained in this press release. 7/6 (SOFR) Page . If you are in any doubt you should consult an appropriately qualified financial advisor. To learn more, visit fanniemae.comand follow us on twitter.com/fanniemae. Fannie Mae issued the market’s first SOFR-indexed securities in 2018 and we remain active in those markets. We are driving positive changes in housing finance to make the home buying process easier, while reducing costs and risk. Fannie Mae and Freddie Mac said they will stop accepting adjustable ... Treasury Department officials said they are considering the possibility of issuing a new floating-rate note linked to SOFR. Updated outstanding SF CRT notes that are indexed to one-month LIBOR as of September 30, 2020 at Fannie Mae ($25.6 billion) and at ... Average SOFR to Term SOFR, when Term SOFR becomes available 5 Fannie Mae Multifamily WASHINGTON, DC – Today, Fannie Mae issued the market's first-ever Secured Overnight Financing Rate (SOFR) securities. Form 6102.ARM. About the Mortgage Lender Sentiment Survey, SOFR - Fannie Mae Pioneers Market's First-Ever Secured Overnight Financing Rate (SOFR) Securities. products. Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of Americans. Fannie Mae also incorporated a reference to SFC 785 which requires SFC 785 to be delivered for all non-SOFR ARM loans that contain the updated fallback language and are closed on notes and riders with revision dates during or after February 2020. New Fannie Mae and Freddie Mac SOFR products use the 30-day Average SOFR index and a 6-month reset period. Cease ** Single-Family & Multifamily. ICE launches SOFR futures. SOFR Note Issuance. On 26th July, Fannie Mae issued a $6 billion floating-rate senior unsecured note based on SOFR.

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