LIBOR Transition Playbook

Single-Family Adjustable-Rate Mortgages (ARM)

December 2023
2

Summary of Changes

The table below details the list of changes since the June 2023 version of the LIBOR Transition 

Playbook was published on the Fannie Mae and Freddie Mac websites.

Section Summary of changes

1. Refinitiv 

Rebranding ▪ Updated data tables to reflect Refinitiv rebranding
3

Legal information and disclaimer

Information in the London Interbank Offered Rate (“LIBOR”) Transition Playbook is preliminary and 

subject to revision and updates from time to time. This document is an indicative summary of our 

preliminary analysis regarding the potential upcoming LIBOR transition. This document and the 

analysis may be amended, superseded or replaced by subsequent summaries or actions. The 

analyses, preliminary views and opinions expressed herein are based on certain assumptions that also 

are subject to change. Readers should rely on the information contained in the loan documentation, 

securities offering documents, operative documents, etc. in order to evaluate the rights and 

obligations for each such loan or security. As a reminder, Fannie Mae and Freddie Mac (the “GSEs”) are 

in separate conservatorships and their conservator (“FHFA”) has the authority to direct either or both 

GSEs to take whatever actions it deems appropriate in respect of any LIBOR transition and product or 

contract.

Neither GSE guarantees the accuracy or completeness of information that is contained in this 

document, or that the information is appropriate or useful in any particular context, including the 

context of any investment decision, and it should not be relied upon as such. No representations or 

warranties are made as to the reasonableness of the assumptions made within or the accuracy or 

completeness of any information contained herein. All opinions and estimates are given as of the date 

hereof and are subject to change and neither GSE assumes any obligation to update this document to 

reflect any such changes. The information herein is not intended to predict actual results and no 

assurances are given with respect thereto. No representation is made that any strategy, performance, 

or result illustrated herein can or will be achieved or duplicated. The effect of factors other than those 

assumed, including factors not mentioned, considered or foreseen, by themselves or in conjunction 

with other factors, could produce dramatically different performance or results. Nothing herein will be 

deemed to constitute investment, legal, tax, financial, accounting or other advice. No part of this 

document may be duplicated, reproduced, distributed or displayed in public in any manner or by any

means without the written permission of Fannie Mae and Freddie Mac.

This playbook does not constitute an offer to sell or the solicitation of an offer to buy securities of 

either GSE. Nothing in this playbook constitutes advice on the merits of buying or selling a particular 

investment. Any investment decision as to any purchase of securities referred to herein must be made 

solely on the basis of information contained in the respective GSE’s applicable offering documents, 

and no reliance may be placed on the completeness or accuracy of the information contained in this 

playbook. You should not deal in securities unless you understand their nature and the extent of your 

exposure to risk. You should be satisfied that they are suitable for you in light of your circumstances 

and financial position. If you are in any doubt, you should consult an appropriately qualified financial 

advisor.

Please be aware that the federal Adjustable Interest Rate (LIBOR) Act (the “LIBOR Act”) became law on 

March 15, 2022. As required by the Act, the Board of Governors of the Federal Reserve System 

(“Board”) published regulations identifying Board-selected benchmark replacement rates based on 

the Secured Overnight Financing Rate (“SOFR”) on December 16, 2022. The regulations published by 

the Board have a significant impact on steps that the GSEs will take in connection with the transition 

from LIBOR-indexed products to SOFR-indexed products.

The following disclaimer has been provided by London Stock Exchange Group plc (LSEG) and the GSEs 

take no responsibility for its contents: FTSE USD IBOR Cash Fallbacks are provided by London Stock 
4

Exchange Group plc (“LSEG”) and its affiliates. LSEG and its affiliates shall not be liable for any errors or 

delays in providing or making available the data contained within this service or for any actions taken in 

reliance on the same. FTSE USD IBOR Cash Fallbacks cannot be used for any commercial purpose 

(including redistribution) without a license. Please contact LSEG D&A (formerly Refinitiv) if a license is 

required. FTSE USD IBOR Cash Fallbacks are subject to LSEG’s terms of use and disclaimer available at 

https://www.lseg.com/en/ftse-russell/benchmarks/usd-ibor-cash-fallbacks. 
5

2. SF ARMs and MBS/PCs

2.1 Introduction

On December 22, 2022, the GSEs announced their selection of CME Term SOFR plus a tenor spread 

adjustment, published by LSEG (formerly Refinitiv Limited) as an all-in replacement rate, as the 

benchmark replacement for their LIBOR-indexed SF ARMs and MBS/PCs following the cessation of 

LIBOR. This decision aligns with the Board-selected benchmark replacements for consumer loans and 

is applicable to SF ARMs and MBS/PCs for which the GSEs are responsible for selecting the benchmark 

replacement. 

The following section will help you understand:

• Key milestone dates for transitioning LIBOR-indexed SF ARMs and MBS/PCs

• Guidance on when LIBOR-indexed SF ARMs will convert to SOFR-indexed SF ARMs

• Guidance on benchmark replacements and associated spread adjustments

• High-level considerations for transitioning legacy LIBOR-indexed ARMs 

• Guidance on servicing legacy LIBOR-indexed SF ARMs

• Guidance on legacy SF MBS/PCs 

More information on the legacy transition can be found on Fannie Mae’s LIBOR Transition website and 

Freddie Mac’s Reference Rates Transition website.

2.2 Transition milestones

The GSEs defined key dates related to the transition of legacy LIBOR-indexed ARMs and MBS/PCs. 

Milestones will continue to be updated as necessary. Figure 2-1 identifies these key transition 

milestones.

Figure 2-1: Single-Family LIBOR transition milestones

*The last LIBOR Rate will be calculated by the Intercontinental Exchange (ICE)on June 30th 2023, which will be published in The Wall Street 

Journal on July 3rd 2023.

2.3 Replacement rate determination and spread methodology

❖ Benchmark replacement determination

The LIBOR Act required the Board to publish regulations identifying a Board-selected benchmark 
6

replacement based on SOFR. On December 16, 2022, the Board published its final rulemaking 

confirming the LIBOR benchmark replacements. For consumer products, the 1-, 3-, 6-, and 12-month 

LIBOR indices will fall back, respectively, to 1-, 3-, 6-, or 12-month CME Term SOFR with the applicable 

tenor spread adjustment, published by LSEG (formerly Refinitiv Limited) as an all-in replacement rate,

as defined in the LIBOR Act.

❖ SOFR spread adjustment methodology

Under the LIBOR Act, there will be a one-year phase-in period for consumer products in which the 

transition tenor spread adjustments defined in the LIBOR Act will be incorporated into the 

replacement rate. The spread adjustment immediately following the cessation of LIBOR will be the 

difference between the last published LIBOR rate and the corresponding SOFR replacement (“initial 

spread adjustment”). For every business day following the cessation of LIBOR, the initial spread 

adjustment will linearly converge to the corresponding transition tenor spread adjustments defined in 

the LIBOR Act. Figure 2-2 depicts the LIBOR benchmark replacements and spread adjustment 

methodology for consumer products as defined by the LIBOR Act.

For updates on regulatory and industry efforts to advance the legacy transition, refer to the Board's 

final rulemaking and ARRC’s website.

Figure 2-2: Benchmark replacement guidance for SF LIBOR ARMs and MBS/PCs

2.4 Preparation for the legacy transition

❖ Converting LIBOR ARMs to SOFR ARMs

The transition date of each legacy LIBOR-indexed ARM will depend on the characteristics of the ARM, 

such as the next interest rate reset date and its related interest rate at the start of the lookback period. 

Board 

Final Rule 

Category

Current 

LIBOR 

Index

Spread-adjusted 

SOFR Replacement 

Index

RIC All-In Replacement Rate Calculation

Consumer 

Loans

1 Month

LIBOR

FTSE USD IBOR 

Consumer Cash 

Fallback 1-Month

USDCFCFCTSA1M=

1M CME Term SOFR + Transition Tenor 

Spread Adjustment during the first year; 

1M CME Term SOFR + Fixed Tenor Spread 

Adjustment (0.11448 percent) after first year

6 Month

LIBOR

FTSE USD IBOR 

Consumer Cash 

Fallback 6-Month

USDCFCFCTSA6M=

6M CME Term SOFR + Transition Tenor Spread 

Adjustment during the first year; 

6M CME Term SOFR + Fixed Tenor Spread 

Adjustment (0.42826 percent) after first year

1 Year

LIBOR

FTSE USD IBOR 

Consumer Cash 

Fallback 12-Month

USDCFCFCTSA1Y=

1Y CME Term SOFR + Transition Tenor Spread 

Adjustment during the first year; 

1Y CME Term SOFR + Fixed Tenor Spread 

Adjustment (0.71513 percent) after first year
7

The scenarios included below provide the expected payments and interest rate reset mechanics for 

LIBOR-indexed ARMs with different characteristics. The scenarios are not intended to be exhaustive 

but are intended to provide the reader with representative examples, such that they are able to 

anticipate changes to ARMs which do conform to the examples included below. The examples should 

be used as a guide to help readers understand when the interest rate and payment calculations of 

LIBOR-indexed ARMs switch to the corresponding benchmark replacements for the first time. 

For all Fannie Mae and Freddie Mac owned loans indexed to LIBOR with interest rate adjustments 

based on a lookback date that occurs after July 3, 2023, servicers must use the applicable, “all-in”, 

“no floor” FTSE USD IBOR Cash Fallback, as published by LSEG (formerly Refinitiv Limited)v. LSEG will 

be posting replacement indices on their consumer-facing website on a one-day delay, the same 

way The Wall Street Journal published LIBOR indices. Servicers servicing LIBOR-indexed ARM Notes 

must use the same lookback date and the most recent index value posted by LSEG, consistent with 

the LIBOR Index selection today.

❖ Scenario A: LIBOR-indexed ARM, with annual interest rate reset frequency, re-setting on 

August 1, 2023 and a 45-day loan interest rate lookback period

• Loan A is a 10-year seasoned ARM loan indexed to LIBOR, with an annual interest rate reset 

frequency and next interest rate reset date on August 1, 2023. Loan A has a 45-day loan 

interest rate lookback period.

• Since LIBOR is still available 45 days prior to the ARM’s interest rate reset date (i.e., June 17, 

2023), the interest rate calculations (and the related payment calculation) will use the 

applicable LIBOR index in effect on June 17, 2023.

• The respective benchmark replacement will be used on the subsequent annual interest rate 

reset date on August 1, 2024 and each reset date thereafter to calculate the interest rate and 

related payments.

Figure 2-3: Scenario A
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❖ Scenario B: LIBOR-indexed ARM, with annual interest rate reset frequency, re-setting on 

August 1, 2023 and a 1

st Business Day of the preceding month loan interest rate lookback 

period

• Loan B is a 10-year seasoned ARM loan indexed to LIBOR, with an annual interest rate reset 

frequency and next interest rate reset date on August 1, 2023. Loan A has a 1

st Business Day of 

the preceding month loan interest rate lookback period.

• The interest rate calculations (and the related payment calculation) are based on the 

applicable index value posted on July 3, 2023. Given the one-day delay in index publications, 

the applicable index will be the LIBOR index posted in The Wall Street Journal on July 3, 2023, 

which will be the LIBOR index value effective June 30, 2023.

• The respective FTSE USD IBOR Consumer Cash Fallback will be used on the subsequent 

annual interest rate reset date on August 1, 2024 and each reset date thereafter to calculate 

the interest rate and related payments.

❖ Scenario C: LIBOR-indexed ARM, with annual interest rate reset frequency, re-setting on 

September 1, 2023 and a 45-day loan interest rate lookback period

• Loan C is a 10-year seasoned ARM loan indexed to LIBOR, with an annual interest rate reset 

frequency and next interest rate reset date on September 1, 2023. Loan A has a 45-day loan 

interest rate lookback period.

• Since LIBOR is no longer published after the end of June 2023 and is not available 45 days 

prior to the ARM’s interest rate reset date (i.e., July 18, 2023), the respective FTSE USD IBOR 

Consumer Cash Fallback will be used to calculate the new interest rate and the related new 

payment.

• Be sure to use the applicable FTSE USD IBOR Consumer Cash Fallback posted on Refinitiv’s 

consumer-facing website on July 18, which is the value effective July 17.
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Figure 2-4: Scenario C

2.5 Servicing legacy LIBOR-indexed SF ARMs

SF ARMs indexed to LIBOR will transition to the benchmark replacements, requiring borrower 

communications and updated interest rate calculations. 

❖ Non-standard notes

If servicers identify any additional LIBOR ARM non-standard notes in their respective GSE servicing 

books, they are expected to contact the applicable GSE as soon as possible to discern if any specific 

accommodations are necessary. Servicers have been encouraged to initially focus their reviews on 

older vintages of loans, loans originated by Sellers no longer in business, and any loans originated 

under policies and procedures that are known to not require use of Fannie Mae/Freddie Mac uniform 

instruments. Identified non-standard loans may require a change to mortgage margin or designation 

to a specific benchmark replacement once LIBOR is no longer in effect. Fannie Mae and Freddie Mac

will work with each servicer individually to determine how to best manage through the transition 

away from LIBOR on any non-standard notes. 

❖ SOFR ARM index source

Refinitiv Limited has been selected as the publishing vendor for the Board-selected spread-adjusted 

term SOFR reference rates. 

Figures 2-5 and 2-6 show the changes in the description of SF ARM indices for Fannie Mae and Freddie 

Mac servicing, respectively.

Figure 2-5: Updated servicing index descriptions for active Fannie Mae SF ARM indices

Active ARM 

indices Pre-cessation index descriptions Post-cessation index descriptions 

45 6 MONTH WALL STREET JOURNAL LIBOR 

RATE

FTSE USD IBOR Consumer Cash Fallback 

6-Month 

51 6 MONTH WALL STREET JOURNAL LIBOR 

RATE – MONTHLY AVG

FTSE USD IBOR Consumer Cash Fallback 

6-Month 

58 6 MONTH WALL STREET JOURNAL LIBOR 

RATE - DAILY

FTSE USD IBOR Consumer Cash Fallback 

6-Month 
10

Active ARM 

indices Pre-cessation index descriptions Post-cessation index descriptions 

62 1 MONTH WALL STREET JOURNAL LIBOR

- DAILY

FTSE USD IBOR Consumer Cash Fallback 

1-Month 

75 1 YEAR WALL STREET JOURNAL LIBOR –

DAILY

FTSE USD IBOR Consumer Cash Fallback 

12-Month 

89 1 YR WSJ LIBOR-MONTHLY ON 1ST BUS. 

DAY

FTSE USD IBOR Consumer Cash Fallback 

12-Month 

Figure 2-6: Updated servicing index descriptions for active Freddie Mac SF ARM indices

Active ARM 

indices Pre-cessation index descriptions Post-cessation index descriptions 

007 LIBOR 6MO LIBOR Rep 6M

011 LIBOR CO 6MO LIBOR Rep 6M

017 FRBNY JCD 6M* LIBOR Rep 6M

036 LIBOR 1MO LIBOR Rep 1M

038 SLIBOR 6MO LIBOR Rep 6M

039 SM CD 6MW* LIBOR Rep 6M

041 LIBOR 1YR LIBOR Rep 1Y

*Previously transitioned to 6-Month LIBOR

❖ Actions to consider 

Servicers will need to incorporate the benchmark replacements into calculations and reconciliations 

for borrower payments. The calculations will need to be updated on an individual loan basis based on 

the terms of the ARM, which include:

• Payment adjustment frequency

• Rate adjustment frequency

• Loan payment lookback period

• Loan rate lookback period

• Initial/next payment reset date

• Initial/next interest rate reset date
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Figure 2-7: Actions to consider when servicing SF ARMs

Focus areas Actions to consider

Borrower 

communications

▪ Provide timely notice of the change in the index to borrowers consistent 

with loan documents, applicable law and regulations, including those 

governing payment change notices under Regulation Z 

▪ Retain a copy of the notice in the servicing file

▪ Send a copy of the borrower notice to the document custodian with an 

instruction to maintain the copy with the original LIBOR-indexed note. At 

least one such notice, must, at a minimum be sent on or after July 1, 2023, 

and prior to the loan’s impacted interest-rate change date

▪ Supplementary notices may be sent prior to July 1, 2023. Servicers may 

consider using, and amending as necessary, the MBA Borrower 

Communication Template for Existing LIBOR ARMs (Notice) and MBA 

Borrower Communication Template for Existing LIBOR ARMs (Letter)

Legal documentation 

▪ Provide a copy of the note to the appropriate GSE if there are any variations 

to the Uniform ARM note’s replacement language that was used just prior to 

recent revisions and request instructions on how to proceed 

Use of a new index in 

rate and payment 

calculations

▪ Update and test systems, reporting and other processes or activities related 

to interest rate adjustment calculations to incorporate the benchmark 

replacements' product parameters 

▪ Adjust interest accrual calculations for changes in the underlying index

Transfer of servicing

▪ Ensure that servicing transferees have the capability to service loans 

indexed to the benchmark replacements

2.6 Administering legacy LIBOR-indexed SF MBS/PCs

The LIBOR transition impacts MBS/PCs consisting of pools of LIBOR-indexed ARMs. Unless terminated 

at or prior to the time of the LIBOR transition, those outstanding MBS/PCs will also transition to the 

respective CME Term SOFR index and spread adjustment, published by LSEG (formerly Refinitiv 

Limited) as an all-in replacement rate.

❖ Actions to consider 

Investors and vendors will need to maintain awareness of index and calculation changes. For Fannie 

Mae, SF MBS subtypes and index codes will not change; however, index descriptions associated with 

subtypes and index codes will be updated in Fannie Mae applications and disclosure reporting. Refer 

to Figure 2-8 for Fannie Mae index description changes. For Freddie Mac, prefixes and index codes will 

not change; however, index descriptions associated with prefixes and index codes will be updated to 

reflect the transition to the replacement indices. Refer to Figure 2-9 for Freddie Mac index description 

changes.
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Figure 2-8: Updated Fannie Mae SF MBS/PC index descriptions for disclosure 

Disclosure 

Index Code

Fannie Mae Existing 

Description

Updated Description

35 1-Month Wall Street 

Journal LIBOR Rate (Daily)

FTSE USD IBOR Consumer Cash Fallback 1-Month

42 6-Month Wall Street 

Journal LIBOR Rate

FTSE USD IBOR Consumer Cash Fallback 6-Month

43 6-Month Wall Street 

Journal LIBOR Rate (Daily)

FTSE USD IBOR Consumer Cash Fallback 6-Month

44 6-Month Wall Street 

Journal LIBOR Rate

(Monthly AVG)

FTSE USD IBOR Consumer Cash Fallback 6-Month

37 1-Year Wall Street Journal 

LIBOR Rate (Monthly)

FTSE USD IBOR Consumer Cash Fallback 12-Month

38 1-Year Wall Street Journal 

LIBOR Rate (Daily)

FTSE USD IBOR Consumer Cash Fallback 2-Month

Figure 2-9: Updated Freddie Mac SF MBS/PC index descriptions for disclosure 

Disclosure 

Index Code

Freddie Mac Existing 

Description

Updated Description

36 LIBOR_1MO_WSJ FTSE USD IBOR Consumer Cash Fallback 1-Month

38 LIBOR_1YR_WSJ_DLY FTSE USD IBOR Consumer Cash Fallback 12-Month

42 LIBOR_6MO_WSJ FTSE USD IBOR Consumer Cash Fallback 6-Month

43 LIBOR_6MO_WSJ_DLY FTSE USD IBOR Consumer Cash Fallback 6-Month

44 LIBOR_6MO_WSJ_MNTH_A

VG

FTSE USD IBOR Consumer Cash Fallback 6-Month

02 CD_6MO_SEC_MRKT_MNT

H_AVG*

FTSE USD IBOR Consumer Cash Fallback 6-Month

*Previously transitioned to 6-Month LIBOR

Figure 2-10: Actions to consider when administering SF MBS/PCs

Focus Areas Actions to consider

Investor awareness ▪ Maintain awareness of the updates to impacted pools 

Use of a new index in 

rate and payment 

calculations

▪ Update and test systems, reporting and other processes or activities related 

to interest rate adjustment calculations to incorporate the benchmark 

replacements’ product parameters
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6. Appendix: Introduction to SOFR based new products

6.1 Introduction

To assist stakeholders in preparing for the transition from LIBOR to alternative reference rates 

(“ARRs”), information and guidance related to the issuance of new contracts have been consolidated 

into the following appendix sections. The following sections are targeted at readers who need 

information about the following products:

• Single-Family (“SF”) Adjustable-rate Mortgages (“ARMs”) and securities, i.e., Mortgage-backed 

Securities (“MBS”) and Participation Certificates (“PCs”)

• SF Credit Risk Transfer (“CRT”) transactions

• Collateralized Mortgage Obligations (“CMOs”)

• Fannie Mae Multifamily (“MF”) ARMs and MBS

• Freddie Mac MF Floating-Rate Loans and securities

• MF CRT transactions

The following sections describe key transition milestones and recommended actions for stakeholders 

to consider as they manage the upcoming transition from LIBOR. The following sections serve as a 

tool to help plan and adapt business policies, procedures, and processes to support products linked 

to ARRs and prepare for discontinuing the use of LIBOR as an index. 

Under the guidance of FHFA, the GSEs have been working together on several aspects of the LIBOR 

transition. Where appropriate, the GSEs have aligned policies and milestones. However, each GSE’s 

timelines and product details may differ. Readers should take note of these differences, which are 

further explained in each chapter of this document.

For more details and FAQs on each GSE’s transition, refer to LIBOR transition webpages for Fannie 

Mae and Freddie Mac, respectively.

Please direct any additional questions to your Fannie Mae or Freddie Mac account management teams.

6.2 SOFR-indexed key milestones

The GSEs have established milestones leading to the transition from LIBOR, including timelines for 

beginning acquisition and issuance of SOFR-indexed products and ceasing acquisition and issuance of 

LIBOR-indexed products.

Transition timelines are defined for major products offered by the GSEs based on timing for finalizing 

transition strategies and external market dependencies. Milestones will continue to be updated as 

necessary. For more detailed timelines, refer to the individual chapters for each product.
14

Figure 6-1: Key transition milestones

Product

Fannie Mae Freddie Mac

Offer SOFR 

products

Cease LIBOR 

offering Offer SOFR products Cease LIBOR offering

SF ARMs and 

MBS/PCs1 Aug. 2020 Dec. 20202 Nov. 2020

▪ Dec. 2020: Last LIBOR ARM 

Guarantor PC Issue Date

▪ Dec. 20202: Last LIBOR ARM 

Settlement Date

SF CRT

transactions Oct. 2021 Dec. 2020 Oct. 2020 Oct. 2020

CMOs Jul. 2020 Oct. 20203 Jul. 2020 Oct. 20203

Fannie Mae 

MF ARMs and 

MBS1

Sep. 2020 Dec. 2020 N/A N/A

Freddie Mac 

MF FloatingRate Loans

and securities

N/A N/A

▪ Dec. 20, 2019: K-deals

▪ Sep. 1, 2020: Floating-Rate 

Loans

▪ Dec. 17, 2020: K-deals 

backed only by SOFRindexed Floating-Rate 

Loans

▪ Dec. 2020: Ceased purchase 

of LIBOR-indexed FloatingRate Loans and hybrid loans

▪ End of Q2 2021: Ceased 

issuance of LIBOR-indexed 

securities

MF CRT

transactions TBD Dec. 2020 Jan. 2021 Dec. 2020

1 The underlying mortgages needed to have an application date no later than September 30, 2020. Effective June 

30, 2022, the GSEs will no longer resecuritize LIBOR-indexed MBS/PCs and Megas/Giants into new issuance 

LIBOR-indexed bonds

2 The GSEs stopped accepting LIBOR-indexed pool deliveries after this date. 

3 The GSEs will no longer issue resecuritizations of previously issued LIBOR-indexed certificates (whether CMO or 

ARM certificates) into new LIBOR-indexed bonds that settle after June 30, 2022. 
15

7. Appendix: Single-Family ARMs

7.1 Introduction

The GSEs have taken the following steps, under FHFA’s guidance, to prepare for the transition from 

LIBOR for SF ARMs:

• Updated existing uniform ARM notes and riders to include fallback and trigger language as 

recommended by the ARRC

• Designed (in conjunction with the ARRC) new SF ARMs that use the NY Fed’s 30-day compound 

average of SOFR (“30-day Average SOFR”) as the underlying index

o Fannie Mae began accepting delivery of SOFR-indexed ARMs on August 3, 2020, and 

Freddie Mac began underwriting SOFR-indexed ARMs on October 1, 2020 and accepting 

delivery of SOFR-indexed ARMs on November 9, 2020

• Stopped accepting delivery of LIBOR-indexed ARM MBS/Guarantor PCs (with the last issue 

date being December 1, 2020)

• Stopped cash/whole loan purchase of LIBOR-indexed ARMs after December 31, 2020 

• Started discussing strategies for the transition of existing LIBOR-indexed ARMs 

The following section will help you understand:

• Key milestones for the SF ARM LIBOR transition

• Differences and similarities between LIBOR-indexed and SOFR-indexed ARMs

• How to prepare for the origination, selling, servicing and securitization of SOFR-indexed ARMs

• High-level considerations for transitioning existing LIBOR-indexed ARMs 

7.2 Transition milestones

The GSEs defined and met key dates related to the origination, commitment, pricing and delivery 

processes for SOFR-indexed ARMs, as well as dates for the cessation of LIBOR-indexed ARM and 

MBS/PCs purchases. Additional details and milestones for existing loans will be provided as they 

become available. Figure 7-1 identifies key transition milestones for SF ARMs.

Figure 7-1: SF ARMs transition timeline

7.3 SOFR-indexed ARM characteristics

❖ Comparing LIBOR and SOFR ARMs

The GSEs designed SF SOFR-indexed ARM products in conjunction with other members of the ARRC 
16

Consumer Products Working Group. These products are based on 30-day Average SOFR, as published 

by the NY Fed. Sellers and Servicers are instructed to use the final/revised values of the index which 

should be available no later than 3:00 p.m. ET.

The primary features of SOFR-indexed ARMs and MBS/PCs that differ from LIBOR-indexed ARMs and 

MBS/PCs are:

• Interest rate index: 30-day Average SOFR

• Initial fixed period: varies, with a minimum initial fixed period of 3 years for SOFR- indexed 

ARMs

• Interest rate adjustment period: 6 months

• Interest rate adjustment cap: +/-1 percentage point (“%”) per subsequent adjustment period

• Margin: will likely differ due to basis and other market-based adjustments

• New ARM plans: introduced for SOFR (Fannie Mae)

• New Cash Contract and Guarantor Pooling Products: introduced to support SOFR- indexed 

ARMs (Freddie Mac)

Figure 7-2 summarizes key product features for both SOFR and LIBOR ARMs.

Figure 7-2: Key product features of LIBOR and SOFR ARMs

Product Features LIBOR ARMs SOFR ARMs

Interest rate index 1-Year WSJ LIBOR 30-day Average SOFR

Initial fixed period 1, 3, 5, 7 or 10 years 3, 5, 7 or 10 years

(no 1-year initial fixed period)

Interest rate 

adjustment period

Changes every 1 year after initial

fixed period

Changes every 6 months after initial fixed 

period

Lookback period New rate determined 45 days in advance No change

Cap at first adjustment +/-2% for 3- and 5-year ARMs

+/-5% for 7- and 10-year ARMs No change

Cap at subsequent 

adjustments +/-2% +/-1%

Life cap Up to 5% for Fannie Mae

Up to 5% for Freddie Mac

No change for Fannie Mae

5% for Freddie Mac

Margin (lender 

discretion)

2.25% for Fannie Mae

Defined on Execution for Freddie Mac Minimum 1%; Maximum 3% 

Fannie Mae has updated ARM plans and a Special Feature code (“SFC”) in support of the transition to 

SOFR, as detailed in Figure 7-3.
17

Figure 7-3: ARM plans and special feature codes for LIBOR and SOFR ARMs

Plans and Codes LIBOR ARMs SOFR ARMs

ARM plans submitted 

to Desktop 

Underwriter® (“DU”)

Import

GEN3

GEN5

GEN7

GEN10

DU User Interface

FM GENERIC, 3 YR

FM GENERIC, 5 YR

FM GENERIC, 7 YR

FM GENERIC, 10 YR

No change

ARM plans submitted 

to Loan Delivery 2720-2729, 2737, 3252 4926, 4927, 4928, 4929

SFC for notes with 

fallback language 785 None: all SOFR-indexed ARM notes will contain fallback language

Freddie Mac has updated Cash Contract Products, Guarantor Security Products, Guarantor Product 

Types and an Investor Feature Identifier (“IFI”) in support of the transition to SOFR, as detailed in 

Figure 7-4.

Figure 7-4: Additional guarantor and investor features for LIBOR and SOFR ARMs

Feature LIBOR ARMs SOFR ARMs

Loan Product

Advisor® No product information is submitted No changes

Contract products for 

Take Out ARM Cash 

Contract

1/1 1Y LIBOR ARM 2/2/6

3/1 1Y LIBOR ARM 2/2/5 or 6

5/1 1Y LIBOR ARM 2/2/5 or 6

7/1 1Y LIBOR ARM 5/2/5

10/1 1Y LIBOR ARM 5/2/5

3Y 6M 30D Avg. SOFR ARM 2/1/5

5Y 6M 30D Avg. SOFR ARM 2/1/5 

7Y 6M 30D Avg. SOFR ARM 5/1/5 

10Y 6M 30D Avg. SOFR ARM 5/1/5

Security Products for 

Take Out ARM 

Guarantor Contract

NonCnvrt 1/1 1Y LIBOR ARM 2/2/2-6

NonCnvrt 3/1 1Y LIBOR ARM 2/2/2-6

NonCnvrt 5/1 1Y LIBOR ARM 2/2/2-6

NonCnvrt 7/1 1Y LIBOR ARM 2/2/2-6

NonCnvrt 7/1 1Y LIBOR ARM 5/2/5-6

NonCnvrt 10/1 1Y LIBOR ARM2/2/2-6

NonCnvrt 10/1 1Y LIBOR ARM5/2/5-6

NonCnvrt 3Y 6M 30D Avg. SOFR ARM 2/1/5

NonCnvrt 5Y 6M 30D Avg. SOFR ARM 2/1/5 

NonCnvrt 7Y 6M 30D Avg. SOFR ARM 5/1/5 

NonCnvrt 10Y 6M 30D Avg. SOFR ARM 5/1/5

Product types for Take 

Out ARM Guarantor 

Contract

1/1 ARM LIBOR

3/1 ARM LIBOR

5/1 ARM LIBOR

7/1 ARM LIBOR

10/1 ARM LIBOR

3/6 SOFR ARM

5/6 SOFR ARM

7/6 SOFR ARM

10/6 SOFR ARM

IFI for notes with 

fallback

language

J23 None: all SOFR-indexed ARM notes will 

contain fallback language

For more background on how the new SOFR-indexed ARM was developed, refer to Options for Using 

SOFR in Adjustable Rate Mortgages, published by the NY Fed in July 2019.
18

❖ SOFR ARM index calculation

SOFR-indexed ARMs are based on 30-day Average SOFR, as published by the NY Fed, which is a 

compounded average of overnight SOFR over the preceding 30 calendar days.

❖ SOFR ARM index source

The NY Fed publishes the 30-, 90- and 180-day compounded SOFR averages daily.

❖ SOFR ARM interest rate calculation

There is no change as to how the borrower interest rate will be calculated when using 30-day Average 

SOFR.

7.4 Preparation for SF SOFR ARMs

❖ Originating and underwriting SF SOFR ARMs

Generally, the processes for originating and underwriting SOFR ARMs are like the existing processes 

used to originate and underwrite ARMs tied to any other index, and all existing conventional ARM 

requirements apply to SOFR ARMs.

❖ Key concepts

The GSEs have made multiple specification updates in the latest versions of their automated 

underwriting systems (“AUS”) in support of SOFR ARMs, including adding a new enumeration to 

represent the use of 30-day Average SOFR.

Fannie Mae has applied the specification updates noted below to DU Specification MISMO 3.4 (DU 

Spec), while Freddie Mac applied specification updates to Loan Product Advisor specifications v5.0.06. 

Other existing data requirements (e.g., for margin and index value) will still be required unless 

otherwise noted.

Lenders should note the AUS updates in Figure 7-5 when preparing for the origination and 

underwriting of SOFR-indexed loans.

Figure 7-5: GSE automated underwriting systems supporting SOFR ARMs

Requirements Fannie Mae SOFR ARMs Freddie Mac SOFR ARMs

Update timeline Specification updates complete Loan Product Advisor v5.0.06 

AUS version DU Specification MISMO 3.4 (DU Spec)4 LPA v5.0.06

4 Fannie Mae’s EarlyCheck system also uses the DU input file. The guidance provided for DU submissions is also 

applicable to EarlyCheck.
19

Requirements Fannie Mae SOFR ARMs Freddie Mac SOFR ARMs

Enumerations

▪ “30DayAverageSOFR” added for 

IndexSourceTypeDescription

▪ Note: Use of enumeration is optional, as 

DU does not require identification of a 

specific ARM index for underwriting 

evaluation

“30DayAverageSOFR” added for 

IndexSourceTypeDescription

ARM index

▪ Populate IndexSourceType using 

“Other” in DU

▪ Users have the option to populate 

IndexSourceTypeOtherDescription with

“30DayAverageSOFR”

▪ Lenders to use the followingdata points 

in Loan Product Advisor:

▪ IndexSourceType = “Other”

▪ IndexSourceTypeOtherDescription

▪ = “30DayAverageSOFR”

▪ The data point IndexSourceType will 

continue to be required for all ARMs

ARM plan data

▪ Users are still required to submit ARM 

plans in DU for underwriting evaluation

▪ Submit generic ARM plans using the 

InvestorProductPlanIdentifierfield

▪ Do not submit lender ARM plandata or 

SOFR ARM plan numbers

N/A

In addition, Lenders should note the following with respect to Uniform MortgageData Program 

(“UMDP”) requirements:

• No updates are necessary for the Uniform Loan Application Dataset (“ULAD”), since ARM 

indexes are not displayed on the Uniform Residential Loan Application(“URLA”)

• There are no planned updates for the Uniform Closing Dataset (“UCD”)

• The new SOFR index will be delivered using IndexType = “Other” and 

IndexTypeOtherDescription = SOFR

• Data point names for each GSE’s AUS are different from the UCD

For more information on existing SOFR impacts on UMDP requirements, refer to the GSEs' 

announcements on UMDP updates.
20

Figure 7-6: Necessary actions for originating and underwriting SF SOFR ARMs

Focus area Necessary actions

Documentation

▪ Update FAQs and borrower ARM disclosure documentation

▪ Update closing instructions and/or train closing agents, escrow agents and closing

attorneys

▪ Review differences in updated procedures for printed notes and eNotes

▪ Test printing of all updated documents (e.g., notes, riders, Closing Disclosure, other

disclosures)

▪ Update training manuals for origination staff including originators, processors, 

underwriters, closers, post-closers, andQC

▪ Update broker and correspondent lending training manuals, policies and 

documentation

Lender systems, 

processes and training

▪ Maintain awareness of new field options for standard ARM enumerations (e.g., index 

type and rate reset period)

▪ Update Loan Origination System (“LOS”)/vendor systems with new SOFR ARMrelated enumerations

▪ Update LOS product, eligibility and pricing rules

▪ Develop and implement pricing, hedging and execution strategies

▪ Provide training for staff, including originators, processors, underwriters, closers, 

post-closers and QC

o SOFR adjusts every six months, not every year

o The minimum initial fixed period for SOFR loans is three years

▪ Provide communications and/or training for brokers, correspondents, eNote vaults, 

electronic registries, Document Preparation (“Doc Prep”) and other third-party

vendors

GSE systems

▪ Directly integrated lenders, LOS and other third-party vendors should be 

coordinating with each GSE to update their interfaces to accommodate new SOFR 

ARM products

Document custodian

▪ Remember that as part of the note certification process, the GSEs require that the 

Custodian verify, for ARM notes with the revision date “(rev. 2/20)”, the lifetime floor 

is equal to the ARM’s margin as stated in the note; if it does not, the discrepancy will 

be reported as a documentation issue and the note will not be certified for sale

o This information is reflected in Fannie Mae’s ARM plans, and an annual update of 

Freddie Mac’s Document Custody Procedures Handbook will reflect this 

requirement

❖ Helpful links

For more information on origination and underwriting, refer to the following resources:

Fannie Mae

• ARM Plan Matrix

• ARM Note Riders and Addenda
21

• Legal Documents

Freddie Mac

• Single-Family Seller/Servicer Guide, Chapter 4401

• Single-Family Uniform Instruments

❖ Selling and delivering SOFR ARMs

Generally, the processes for selling and delivering SOFR ARMs is the same as the existing processes 

used to sell and deliver ARMs tied to any other index. Sellers will see additional dropdown options 

available in GSE systems to reflect the addition of new SOFR offerings, as applicable.

All existing, conventional ARM requirements apply to SOFR ARMs, including existing Uniform Loan 

Delivery Dataset (“ULDD”) requirements. For more information on existing UMDP requirements as well 

as updates to support the transition to the SOFR ARM index, refer to the GSEs' announcements on 

ULDD updates. 

❖ Key concepts

The GSEs have updated their respective ULDD specifications in support of SOFR ARMs, similar to the 

updates made for AUS specifications. Users should note the updates outlined in Figure 7-7 when 

preparing to sell SOFR-indexed loans to the GSEs.

Figure 7-7: Updates for selling and delivering SOFR-indexed loans to the GSEs

Requirements Fannie Mae SOFR-indexed ARMs Freddie Mac SOFR-indexed ARMs

Update timeline ▪ Loan Delivery system updates were 

made available August 3, 2020

▪ Loan Selling Advisor system updates 

were made available November 9, 2020

Enumerations ▪ “30DayAverageSOFR” added to 

IndexSourceTypeDescription

▪ “Other” added to IndexSourceType

▪ “30DayAverageSOFR” added to 

IndexSourceTypeDescription

ARM Index Data

▪ The new index will be delivered using 

IndexSourceType = “Other”

▪ IndexSourceTypeOtherDescription = 

“30DayAverageSOFR”

▪ IndexSourceTypeDescription added as a 

data point

▪ The new index will be delivered using 

IndexSourceType = “Other” plus 

IndexSourceTypeOtherDescription = 

“30DayAverageSOFR”

ARM plan data

▪ Sellers should submit one of the 

published SOFR ARM plan numbers in 

the ULDD sent to Loan Delivery and/or 

EarlyCheck; do not submit “Lender ARM 

Plan” or DU generic ARMplans

N/A

The GSEs have also updated reference product labels, ARM plans, subtypes and pool prefixes as 

applicable for new SOFR-indexed MBS/PCs. Refer to the “Securitization of SF SOFR ARMs” section 

below for more detail.
22

Figure 7-8: Necessary actions for selling and delivering SOFR ARMs

Focus areas Necessary actions

Seller systems, 

processes and training

▪ Train Capital Markets/Secondary Marketing staff to use new pricing screens 

available for SOFR ARM whole loan commitments, including guaranty fee amounts 

(“G-fee” amounts for Fannie Mae and Credit Fee in Yield amounts for Freddie Mac)

▪ Identify source for current SOFR rates and update internal systemfeeds

▪ Ensure SOFR-indexed ARM interest rates are distributed via all existing methods to 

all channels

▪ Update LOS product, eligibility and pricing rules

▪ Develop and implement pricing, hedging and executionstrategies

▪ Provide training for staff (e.g., capital markets/secondary, post-closers, shippers 

and investor relations) on all aspects of newproducts

▪ Provide communications and/or training for brokers, correspondents, document 

custodians, warehouselenders, disbursement agents, eNote vaults, electronic 

registries, document file preparers and other third-party vendors

▪ GSEs’ loan delivery UIs are available for manual data entry, ifneeded

GSE systems

▪ Maintain awareness of how SOFR ARM characteristics are reflected in existing 

pricing, execution, committing and delivery applications:

o Pricing menu options for cash execution

o G-fee pricing menu options for MBS execution

o Additional options for enumerations and ARM plans for SOFR-indexed ARMs 

(Fannie Mae)

o Additional Cash Contract Products, Guarantor Security Products and Guarantor 

Product Types for SOFR-indexed ARMs (Freddie Mac)

❖ Helpful links

For more information on LIBOR transition impacts to selling and delivering SOFR ARMs, refer to the 

following resources:

Fannie Mae

• Selling Guide

• Single-Family Servicing Guide

Freddie Mac

• Single-Family Seller/Servicer Guide

❖ Securitization of SF SOFR ARMs

The GSEs developed new pool prefixes, subtypes (Fannie Mae), and documentation language to 

support the securitization of SOFR-indexed ARMs. Impacted parties should be ready to operationalize 

these changes when involved in the purchase, trading or investor reporting of SOFR MBS/PCs and 

Megas/Giants.
23

❖ Key concepts

The GSEs introduced new prefixes and subtypes for MBS/Megas and PCs/Giants, as outlined in Figure 

7-9.

Figure 7-9: New prefixes and subtypes for GSE MBS/Megas and PCs/Giants

Fannie Mae Freddie Mac

Product Prefix ARM plan 

number

ARM 

subtype Prefix Pool number range

3-Year SO 4926 85A 8A 8A0001-8A9999

5-Year SO 4927 85B 8B 8B0001-8B9999

7-Year SO 4928 85C 8C 8C0001-8C9999

10-Year SO 4929 85D 8D 8D0001-8D9999

Freddie Mac is using the existing pool prefix for 30-day Average SOFR ARM Giant PCs.

Figure 7-10: Existing Freddie Mac pool prefix for 30-day Average SOFR ARM Giant PCs

Product description Prefix Pool number range

Various indices, WAC ARM Giant 84 840001-849999

In addition, 30-day Average SOFR Hybrid ARM index codes were created by each GSE for MBS/PCs and 

Mega/Giants disclosure purposes.

• Fannie Mae introduced a new index code (061) and new subtypes for 30-day Average SOFR, 

which is reflected in its existing MBS disclosure files and referenced in its Single-Family MBS 

Disclosures Guide and Subtype webpage

• Freddie Mac added index code 61 for 30-day Average SOFR. This index code will be disclosed 

via the existing disclosure field for loan level (ID L-046) and security level (ID S-51). Refer to the

Single-Family Disclosure Guide for disclosure filedetails

SF legal documentation, including MBS Disclosures, Prospectus and Prospectus Supplements have 

been updated to include SOFR as an index.

❖ Eligible collateral for Freddie Mac new issue ARM Giant PCs

The 45-day Fixed-rate and 75-day ARM Giant Collateral Prefix Eligibility Chart has been updated to 

include 30-day Average SOFR-indexed ARMs. In addition, the existing ARM Giant PC pooling rules are 

available on Freddie Mac’s MBS website. Effective June 30, 2022, the GSEs stopped resecuritizing 

existing LIBOR-indexed CMOs (both Single-Family and Multifamily) and MBS/PCs into new LIBORindexed securities. The resecuritization of LIBOR-indexed CMOs and MBS/PCs into appropriately 

structured new-issue SOFR indexed bonds will continue to be permitted.
24

Figure 7-11: Necessary actions for updates to eligible collateral for ARM Giant PC

Focus areas Necessary actions 

Documentation Note updates to base language in prospectus documents, including new index codes

GSE systems Note the inclusion of a new pool prefix, subtypes and index code to represent new 

SOFR ARM characteristics

❖ Helpful links

For more information on LIBOR transition impacts on securitization of SOFR ARMs, refer to the 

following resources:

Fannie Mae

• Pool Prefix Glossary

• ARM MBS Subtypes

• Updated MBS Prospectus language

Freddie Mac

• Prefix Library

❖ Servicing SF SOFR ARMs

While a new underlying index will be used to calculate borrower payments, the calculations 

themselves will not change.

❖ Key concepts

• Servicers will need to incorporate the new SOFR index into calculations and reconciliations for 

borrower payments; however, the calculations are not changing

• Servicers will need to incorporate the SOFR index into their current rate and payment 

adjustment processes

Figure 7-12: Necessary actions for servicing SOFR ARMs

Focus areas Necessary actions

Use of a new index in 

rate and payment 

calculations

Update and test systems, reporting and other processes or activities related to 

interest rate adjustment calculations to incorporate SOFR into product parameters. 

These include initial fixed period, current index value, margin, lookback period and 

rounding method, plus the initial, subsequent and lifetime caps/ceilings and floors, 

underlying index, resetperiods and subsequent caps

Transfer of servicing▪ Ensure that servicing transferees have the capability to service SOFR loans
25

❖ Helpful links

For more information on LIBOR transition impacts on servicing of SOFR ARMs, refer to the following 

resources:

Fannie Mae

• Single-Family Servicing Guide

Freddie Mac

• Single-Family Seller/Servicer Guide

❖ Cessation of purchase of SF LIBOR ARMs

As of December 31, 2020, the GSEs stopped purchasing LIBOR-indexed ARMs. Lenders, servicers and 

other relevant parties should have taken the necessary steps from a systems, process and training 

perspective to discontinue the origination and delivery of LIBOR ARMs.

❖ Key concepts

• The GSEs no longer purchase LIBOR ARMs as whole loans for cash or in exchange for securities 

provided the related MBS/PC pools.

• Fannie Mae has instructed sellers to deliver SFC 785 for any non-SOFR-indexed ARMs with a 

note and rider containing new fallback language.

❖ Helpful links

For more information on LIBOR transition impacts on the ability to sell and deliver LIBOR ARMs, refer 

to the following resources:

Fannie Mae

• Selling Guide

Freddie Mac

• Single Family Seller/Servicer Guide
26

14. Summary of Prior Changes

Section Summary of changes

August 2020

2. Single-Family 

Adjustable-Rate 

Mortgages and 

Securities

▪ Updated language to reflect that Fannie Mae is now accepting delivery of 

SOFR-indexed ARMs

September 2020

2. Single-Family 

Adjustable-Rate 

Mortgages and 

Securities

▪ Updated the announcement regarding the last MBS/Guarantor PC issue date to 

indicate that it would be for LIBOR ARMs with a latest settlement date of Dec. 

31, 2020

▪ Changed date from Nov. 16, 2020 to Nov. 9, 2020 for Loan Selling Advisor 

system updates and made a minor word change (i.e., “similar to” to “like”)

▪ Inserted language and dates regarding Loan Product Advisor’s availability

▪ Deleted “Fannie Mae only” and “Freddie Mac only” language under actions to 

consider in GSE systems for preparation for SF SOFR ARMs section

▪ Made a minor word change (i.e., “accept” to “purchase”) in Cessation of 

Purchase of SF LIBOR ARMs section

October 2020

2. Single-Family 

Adjustable-Rate 

Mortgages and 

Securities

▪ Updated language to clarify that December 1, 2020 is the last issue date for 

LIBOR-indexed ARM MBS/Guarantor PCs to be delivered to the GSEs with a 

latest LIBOR-indexed ARM settlement date of December 31, 2020

▪ Updated language to indicate that the GSEs have stopped accepting LIBOR 

ARMs with Application Received Dates after September 30, 2020

▪ Updated the transition timeline graph to clarify the milestone description for 

December 31, 2020

▪ Removed language calling out specific plan that the GSEs will stop purchasing 

after December 31, 2020

November 2020

2. Single-Family 

Adjustable-Rate 

Mortgages and 

Securities

▪ Updated the transition timeline graph to clarify delivery milestones in 

December 2020 and updated the transition of existing LIBOR ARM loans to TBD

March 2021

2. Single-Family 

Adjustable-Rate 

Mortgages and 

Securities

▪ Updated transition timelines to reflect latest market announcements and 

consultations

▪ Updated and removed language to reflect the GSEs no longer purchasing SF 

LIBOR-indexed ARMs

October 2021

All Sections ▪ Updated formatting throughout document
27

2. Single-Family 

Adjustable-Rate 

Mortgages and 

Securities

▪ Figure 2-1: Added a milestone for the ARRC’s selection of Refinitiv as the vendor 

for benchmark replacements and updated language in timeline 

▪ 2.4 Preparation for SF SOFR ARMs: Updated Freddie Mac’s Loan Product 

Advisor timelines; updated language around 30-day Average SOFR Hybrid ARM 

Index codes and the SF MBS Disclosures Guide; removed Freddie Mac’s 

guidance to sellers on IFI J23 for non-SOFR-indexed ARMs

▪ 2.5 Transition Existing SF LIBOR ARMs: Added a statement for servicers about 

non-standard notes

June 2022

2. Single-Family 

Adjustable-Rate 

Mortgages and 

Securities

▪ Removed language about final LIBOR-indexed SF ARM settlement date

▪ Added milestones for the Board’s proposed and final rulemaking and the 

rulemaking to the SF timeline

▪ Updated timeline to include year 2022 and tentative plans for a legacy 

transition announcement

▪ Updated margin features for Fannie Mae SF SOFR ARMs

January 2023

All Sections

▪ Updated formatting, diction, and abbreviations throughout for consistency

▪ Updated language to reflect implementation of the Adjustable Interest Rate 

(LIBOR) Act

▪ Updated all sections to add details related to the legacy transition for each 

product

▪ Prior sections of the playbook focused on new products have been moved to 

the appendix

2. Single-Family

Adjustable-Rate 

Mortgages and 

Securities

▪ Updated introduction to reflect GSE announcement of CME Term SOFR 

selection

▪ Updated transition milestones timeline

▪ Updated sections 2.3-2.6 to focus on legacy LIBOR-indexed SF products

▪ Updated milestones for the Board’s final rulemaking on the SF timeline

April 2023

All Sections

▪ Updated Replacement rate determination sections to include finalized 

replacement index names, Refinitiv Instrument Codes (for SF) and all-in 

replacement rate calculations

2. SF ARMs and 

MBS/PCs

▪ Updated index description and all-in replacement rate calculation information 

in Section 2.3

June 2023

1. SF ARMs and 

MBS/PCs 

▪ Updated scenarios illustrating the conversion of legacy LIBOR-indexed ARMs in 

Section 2.4

▪ Updated servicing index descriptions for SF ARMs/MBS in Section 2.5

▪ Updated index descriptions for SF/MBS disclosures in Section 2.6 3. Multifamily 

ARMs, Floating-Rate Loans, and Securities

▪ Updated loan and bond interest accrual timeline illustrations in Section 3.3