Fannie Mae Shares Further Details on the LIBOR Transition

WASHINGTON, DC – Fannie Mae (FNMA/OTCQB) today reminded the market, as announced on December 22, 2022, that it will transition its legacy LIBOR loans and securities to the SOFR-indexed benchmark replacements recommended by the Federal Reserve Board. Additionally, in alignment with the Federal Reserve Board's final rule pursuant to the Adjustable Interest Rate (LIBOR) Act and based on guidance from Fannie Mae's Conservator, the Federal Housing Finance Agency (FHFA), Fannie Mae will not include term SOFR as a benchmark for new loans or floating-rate securities.

As a result, Fannie Mae also will not take any steps to convert existing 30-day Average SOFR-indexed floating-rate loans or securities from the 30-day Average SOFR to term SOFR. The preceding sentences apply to the following products: Multifamily Adjustable-Rate Mortgages (ARMs) and related MBS, Single-Family and Multifamily Credit Risk Transfer (CRT) securities, Single-Family and Multifamily Collateralized Mortgage Obligations (CMOs), Stripped MBS (SMBS), and any other new floating rate loans or securities (excluding Single-Family ARMs and related MBS). The selected replacement index for each legacy LIBOR product can be found in the December 22 announcement.

Fannie Mae will update its LIBOR Transition webpages in the coming weeks.