Freddie Mac’s Replacement Index Selections for Legacy LIBOR Contracts

April 13, 2023

Freddie Mac will transition its legacy U.S. dollar (USD) LIBOR-indexed contracts to an index based on the Secured Overnight 

Financing Rate (SOFR) for loans and securities for which Freddie Mac is responsible for selecting the replacement index. The 

transition will occur after June 30, 2023, the last date on which ICE Benchmark Administration Limited will publish a 

representative rate for all remaining tenors of USD LIBOR. 

Freddie Mac’s replacement rate selections follow the recommendations published by the Federal Reserve Board. The transition 

will include Freddie Mac’s legacy LIBOR-indexed single-family adjustable-rate mortgages (ARMs), derivatives, multifamily 

floating rate loans, multifamily floating rate mortgage-backed securities, collateralized mortgage obligations and credit risk 

transfer securities. Freddie Mac plans to transition as follows:

Consumer Product 

Type*

Federal Reserve 

Board (FRB) 

Category

Current 

LIBOR Index

Spread-Adjusted SOFR 

Replacement Index

Refinitiv Instrument 

Code (RIC)

All-In Replacement Rate 

Calculation

Single-Family 

Adjustable-Rate 

Mortgages (ARM) 

and Related 

Mortgage Backed 

Securities

Consumer Loans 1M LIBOR Refinitiv USD IBOR Consumer 

Cash Fallback 1-Month 

USDCFCFCTSA1M= Relevant tenor of CME Term 

SOFR + applicable tenor 

spread adjustment (Transition 

Tenor Spread Adjustment 

during the first year)

6M LIBOR Refinitiv USD IBOR Consumer 

Cash Fallback 6-Month 

USDCFCFCTSA6M=

1Y LIBOR Refinitiv USD IBOR Consumer 

Cash Fallback 12-Month

USDCFCFCTSA1Y=

Institutional 

Product Type*

Federal Reserve 

Board (FRB) 

Category

Current 

LIBOR Index

Spread-Adjusted SOFR 

Replacement Index

Fixed Tenor Spread 

Adjustment 

All-In Replacement Rate 

Calculation

Single-Family and 

Multifamily 

Collateralized 

Mortgage 

Obligations (CMO)

FHFA-RegulatedEntity Contract1M LIBOR 30-Day Average SOFR + 1-Month 

Spread Adjustment

0.11448 (percent) 30-Day Average SOFR + 

0.11448 (percent)

1Y LIBOR 30-Day Average SOFR + 12-Month 

Spread Adjustment

0.71513 (percent) 30-Day Average SOFR + 

0.71513 (percent)

Single-Family and 

Multifamily Credit 

Risk Transfer 

Securities (CRT)

FHFA-RegulatedEntity Contract1M LIBOR 30-Day Average SOFR + 1-Month 

Spread Adjustment

0.11448 (percent) 30-Day Average SOFR + 

0.11448 (percent)

Multifamily ARMs 

(Fannie Mae), 

Floating-Rate Loans 

(Freddie Mac), and 

related Mortgage 

Back Securities 

(MBS)

FHFA-RegulatedEntity Contract1M LIBOR 30-Day Average SOFR + 1-Month 

Spread Adjustment

0.11448 (percent) 30-Day Average SOFR + 

0.11448 (percent)

6M LIBOR 30-Day Average SOFR + 6-Month 

Spread Adjustment

0.42826 (percent) 30-Day Average SOFR + 

0.42826 (percent)

1Y LIBOR 30-Day Average SOFR + 12-Month 

Spread Adjustment

0.71513 (percent) 30-Day Average SOFR + 

0.71513 (percent)

Derivatives Derivative 

Transactions

Various As defined by the 2020 fallbacks 

protocol published by the 

International Swaps and 

Derivatives Association (ISDA)

0.26161 (percent) (3M) SOFR compounded in arrears 

for the appropriate tenor, plus 

a stated spread adjustment 

based on the appropriate 

tenor 

*Product Type relates to categories specified in the FRB’s final regulation for the LIBOR Act and is not intended to cover all of the GSEs’ products.

Note 1: FRBNY 30-Day Average SOFR rates can be found on the FRB website.

Note 2: Replacement Index Selection Grid updated on 4/13/2023 to include Refinitiv Instrument Codes (RICs) for consumer products and all-in replacement rate calculation details for 

institutional products.

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