Skip to main content
Press Release

Fannie Mae Announces Replacement Rates for Legacy LIBOR Products

December 22, 2022

WASHINGTON, DC – Fannie Mae (FNMA/OTCQB) today announced the replacement indices for the legacy LIBOR loans and securities for which Fannie Mae is responsible for selecting the replacement index. The replacement indices, outlined below, are the benchmark replacements recommended by the Federal Reserve Board and are based on the Secured Overnight Financing Rate (SOFR). The transition to these replacement indices will occur the day after June 30, 2023, the last date on which the Intercontinental Exchange, Inc. (ICE) Benchmark Administration Limited will publish a representative rate for all remaining tenors of USD LIBOR.

This announcement follows the Federal Reserve Board's publication of the final rule pursuant to the Adjustable Interest Rate (LIBOR) Act of 2021. Under that Act, the Federal Reserve Board is the regulator required to select the benchmark replacement for legacy USD LIBOR contracts that are governed by U.S. law.

"Our announcement today represents a key milestone necessary to prepare the mortgage market for the cessation of LIBOR," said Bob Ives, Chief Investment Officer. "It has always been our goal to support an orderly and successful transition from LIBOR in coordination with the Federal Housing Finance Agency, the Alternative Reference Rates Committee, and other mortgage market participants and we will continue to work toward that goal."

The following table lists the replacement index, as specified in the final rule, for each legacy LIBOR product specified below:


Replacement Index

Single-Family Adjustable-Rate Mortgages (ARMs) and related mortgage-backed securities

Relevant tenor of CME Term SOFR + applicable Tenor Spread Adjustment (Transition Tenor Spread Adjustment during the first year)*

Multifamily ARMs and related mortgage-backed securities

30-day Average SOFR + Tenor Spread Adjustment

Single-Family and Multifamily Credit Risk Transfer (CRT) securities

30-day Average SOFR + Tenor Spread Adjustment

Single-Family and Multifamily Collateralized Mortgage Obligations (CMOs)

30-day Average SOFR + Tenor Spread Adjustment


Derivatives will generally use the benchmark replacements identified in the 2020 fallbacks protocol published by the International Swaps and Derivatives Association (ISDA).

* All-in spread-adjusted rates will be published or provided by Refinitiv Limited as "USD IBOR Cash Fallbacks" for "Consumer" products.

About Fannie Mae
Fannie Mae advances equitable and sustainable access to homeownership and quality, affordable rental housing for millions of people across America. We enable the 30-year fixed-rate mortgage and drive responsible innovation to make homebuying and renting easier, fairer, and more accessible. To learn more, visit: | Twitter | Facebook | LinkedIn | Instagram | YouTube | Blog

Media Contact
Matthew Classick

Fannie Mae Newsroom

Photo of Fannie Mae

Fannie Mae Resource Center