Fannie Mae to Discontinue "Fannie Mae LIBOR" Indices
WASHINGTON, DC -- Today Fannie Mae announced that it will no longer post new values for its five Fannie Mae London Inter-Bank Offered Rate (LIBOR) indices, beginning the third quarter of 2007. The indices affected by this action are 1-, 3-, 6-, and 12-month LIBOR Rates and the 12-month monthly average. The final values for Fannie Mae LIBOR indices will be posted by June 28, 2007.
Fannie Mae will not accept delivery of any mortgage loans tied to any Fannie Mae LIBOR index that are originated after June 28, 2007.
Anyone using the Fannie Mae LIBOR index data to adjust mortgage loan interest rates should consult their own counsel regarding the appropriate replacement index for Fannie Mae LIBOR. Fannie Mae has recommended to its lender and servicer customers that subject to language in the related note, LIBOR values published in the Wall Street Journal are comparable replacement indices in most cases.
Fannie Mae will continue to make historic rates available on its Web site at www.fanniemae.com.
For further information, please refer to the Selling and Servicing Guide Announcement 06-21, "Discontinuance of Fannie Mae LIBOR Indices" at https://www.fanniemae.com/singlefamily.Fannie Mae is a New York Stock Exchange Company. It operates pursuant to a federal charter. Fannie Mae has pledged through its American Dream Commitment to expand access to homeownership for millions of first-time home buyers; help raise the minority homeownership rate to 55 percent; make homeownership and rental housing a success for millions of families at risk of losing their homes; and expand the supply of affordable housing where it is needed most.