“SOFR” stands for the Secured Overnight Financing Rate. SOFR is a benchmark rate that is published by the Federal Reserve Bank of New York (FRBNY), which is based on the overnight borrowing costs of banks. The rate is determined based on the previous night’s activity on the U.S. Treasury repurchase (repo) market.
New variable rate Ascent loans applied for on or after January 1, 2022, will use the Secured Overnight Financing Rate (SOFR) as the benchmark index, which will be reflected in your loan documents.