Fannie Mae also incorporated a reference to SFC 785 which requires SFC 785 to be delivered for all non-SOFR ARM loans that contain the updated fallback language and are closed on notes and riders with revision dates during or after February 2020. In response to the ARR’s release of the ARMs fallback language, Fannie Mae and Freddie Mac announced that they plan to publish updates to their uniform ARM notes in the first quarter of 2020. ICE launches SOFR futures. As previously announced, Fannie Mae and Freddie Mac jointly released a LIBOR Transition Playbook and FAQs providing guidance and timelines regarding the transition from the LIBOR to Secured Overnight Financing Rate (“SOFR”) index. Fannie Mae issued the market’s first SOFR-indexed securities in 2018 and we remain active in those markets. Similarly, in the US, Fannie Mae (“FNMA”) issued $6 billion of SOFR-linked bonds2 on July 26th, the first of its kind. Freddie Mac In a bulletin issued on 5 February 2020, Freddie Mac announced that it will no longer purchase any LIBOR-indexed ARM with an application-received date on and after 1 October 2020. LIBOR-Based MBS . Fannie Mae and Freddie Mac said they will stop accepting adjustable ... Treasury Department officials said they are considering the possibility of issuing a new floating-rate note linked to SOFR. products. To learn more, visit fanniemae.comand follow us on twitter.com/fanniemae. Each new program has ARM Index (field 2278) set to “SOFR”. Any investment decision as to any purchase of securities referred to herein must be made solely on the basis of information contained in Fannie Mae's applicable Offering Circular, and no reliance may be placed on the completeness or accuracy of the information contained in this press release. Multifamily SOFR-Based CRT . 12/2020 **Note: Fannie Mae will still be issuing LIBOR PFP pools in Q1 2021 WASHINGTON, DC – Today, Fannie Mae issued the market's first-ever Secured Overnight Financing Rate (SOFR) securities. Note:Fannie Mae uses a 30-day average of the SOFR index as published by the Federal Reserve Bank of New York. Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of Americans. Prepared to issue . 04933 - ARM 7/6 Loan: 30-Day Average SOFR 30-Day Average SOFR Compounded average of SOFR over a specified interest period of 30 days. In preparation for publishing averages of SOFR, the New York Fed published a consultation Opens in a new window of SOFR averages and SOFR index, and is requesting public comment by December 4, 2019. Treasury floating-rate notes may be added to the lexicon helping drive derivatives volume and adoption of SOFR. Issuance of the first-ever SOFR notes. 02255 - ARM 7/6 Loan: 1-month LIBOR LIBOR … floating rate notes indexed to the Secured Overnight Financing Rate (SOFR). "We are proud to lead the market in issuing this landmark transaction. If you have additional questions, Fannie Mae customers can visit Ask Poli to get information from other Fannie Mae published sources. Fannie Mae began pricing Multifamily SOFR ARM products on September 1, 2020 and began accepting delivery of Multifamily SOFR ARMs on October 1. WASHINGTON, DC – Today, Fannie Mae announced and priced its third Secured Overnight Financing Rate (SOFR) offering, an 18-month $2.0 billion issuance. These two new 3/6 SOFR programs: FHLM Freddie Mac (FHLMC) 3/6 SOFR ARM – 2/1/5 (program 114236) FNMA Fannie Mae 3/6 SOFR ARM – 2/1/5 (program … Enter the GSE s. Throughout 2019, a growing population of banks and corporate issuers were responsible for about half of all SOFR-linked notes. WASHINGTON, DC – Today, Fannie Mae issued the market's first-ever Secured Overnight Financing Rate (SOFR) securities. SOFR-based MBS. On February 5, 2020, Fannie Mae and Freddie Mac (the “GSEs”) announced updates regarding adjustable-rate mortgage (“ARM”) products in anticipation of the transition away from the London Interbank Offered Rate (“LIBOR”). On 26th July, Fannie Mae issued a $6 billion floating-rate senior unsecured note based on SOFR. If you are in any doubt you should consult an appropriately qualified financial advisor. As you know, Fannie Mae is a large investor in Treasury securities. Guide Resources For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. Twenty-two institutions have participated, half with multiple issues, for a total of 99 outstanding FRN s at the start of May 2019. The three-tranche $6 billion SOFR debt transaction is scheduled to settle on July 30, 2018. On February 5, 2020, Fannie Mae issued Lender Letter LL-2020-01 , and Freddie Mac issued Bulletin 2020-1 , both of which included the following announcements and key dates: Multifamily SOFR-based ARMs. Uniform Instruments are the Fannie Mae/Freddie Mac and Freddie Mac Notes, Riders, and Security Instruments (Deeds of Trust and Mortgages) used when originating Single-Family residential mortgage loans, in all States and U. S. Territories, as identified in the List of Single-Family Uniform Instruments provided on this website and also identified in Guide Exhibit 4. Fannie Mae will provide further information relating to multifamily SOFR ARM prefixes and subtypes, along with confirmation of the 30-day SOFR index in the coming months. Ellie Mae also will be updating plan codes and audit message to coincide with this requirement. You should be satisfied that they are suitable for you in light of your circumstances and financial position. Single-Family . Updated outstanding SF CRT notes that are indexed to one-month LIBOR as of September 30, 2020 at Fannie Mae ($25.6 billion) and at ... Average SOFR to Term SOFR, when Term SOFR becomes available 5 Fannie Mae Multifamily Both Fannie Mae and Freddie Mac plan to begin issuing SOFR-referenced CMOs this summer and will cease issuance of LIBOR-based CMOs by Q4 2020. The three-tranche $6 billion SOFR debt transaction is scheduled to settle on July 30, 2018. Plan Number. Third SOFR Offering Grows Investor Base. Notes for regularly amortizing mortgages include the Fannie Mae/Freddie Mac Uniform Fixed-Rate Notes and the Fannie Mae/Freddie Mac Uniform Adjustable-Rate Notes and other notes that Fannie Mae has developed for: specific ARM plans (including those for Texas Section 50(a)(6) mortgages), biweekly payment mortgages, growing-equity mortgages. Cease ** Single-Family & Multifamily. Aleksandrs Rozens 202-752-7916. Notes for regularly amortizing mortgages include the Fannie Mae/Freddie Mac Uniform Fixed-Rate Notes and the Fannie Mae/Freddie Mac Uniform Adjustable-Rate Notes and other notes that Fannie Mae has developed for: This page provides downloadable copies of standard and negotiated instruments, including: Get answers to your policy and guide questions, straight from the source. It featured 3 tranches: 6-month $2.5 billion at SOFR + 8 bps; 12-month $2.0 billion at SOFR + 12 bps; 18-month $1.5 billion at SOFR + 16 bps Fannie Mae. Schedule 2 to Multifamily Loan and Security Agreement - Summary of Loan Terms (Interest Rate Type -ARM 7/6 (SOFR)). 1. generate the notes and riders with this language currently exists in Encompass via field ID ARM.FlrVerbgTyp. Along with Fannie Mae and Freddie Mac, … Updated the “as of date” for the $0.9 billion outstanding CRT notes indexed to one-month LIBOR from June 30, 2020 to September 30, … 7/6 (SOFR) Page . About the Mortgage Lender Sentiment Survey, SOFR - Fannie Mae Pioneers Market's First-Ever Secured Overnight Financing Rate (SOFR) Securities. We partner with lenders to create housing opportunities for families across the country. Further, Fannie Mae’s margin on SOFR-based single-family ARMs will have a maximum of 3 percent, and Freddie Mac’s margin will have a minimum of 1 percent and a maximum of 3 percent. Note: Sign up at bottom of the page to subscribe and be notified of updates. and. New standard SOFR Programs, Notes, and Riders: New FNMA/FHLMC SOFR programs, notes, and riders have been created in ConformX. Barclays Capital Inc., Nomura Securities International, Inc., and TD Securities USA are the lead managers on this inaugural transaction. Form 6102.ARM. The GSEs have updated ARM notes and riders to include the fallback language recommended by the Alternate Re Product Description. The GSEs will provide a future announcement concerning the specific SOFR Index or Indices to be used for eligible SOFR ARM Notes. MULTISTATE FIXED/ADJUSTABLE RATE NOTE—30-day Average SOFR Form 3442 04/20 — Single Family — Fannie Mae / Freddie Mac Uniform Instrument (page 2 of 5) Beginning with the first Change Date, my interest rate will be based on an Index that is calculated and Fannie Mae, Credit Suisse, Barclays, and the World Bank have each sold various types of SOFR-linked debt previously. Effective January 3, 2022, the mortgage industry will cease using the long-standing LIBOR and, instead, adopt the new Secured Overnight Funding Rate (SOFR). Multistate Fixed/Adjustable-Rate Note - 30-day Average SOFR, Multistate Fixed/Adjustable-Rate Note - 1 Year Treasury Index, Multistate Fixed/Adjustable-Rate Note - 1 Year Treasury Index - Convertible, Multistate Fixed/Adjustable-Rate Note - WSJ One-Year LIBOR, Multistate Adjustable-Rate Note - 30-day Average SOFR, Multistate Adjustable-Rate Note - ARM 5-1, New Hampshire Adjustable-Rate Note - ARM 5-1, Pennsylvania Adjustable-Rate Note - ARM 5-1, West Virginia Adjustable-Rate Note - ARM 5-1, Puerto Rico Adjustable-Rate Note - ARM 5-1, Multistate Adjustable-Rate Note - ARM 5-2, New Hampshire Adjustable-Rate Note - ARM 5-2, Pennsylvania Adjustable-Rate Note - ARM 5-2, West Virginia Adjustable-Rate Note - ARM 5-2, Puerto Rico Adjustable-Rate Note - ARM 5-2, Multistate Adjustable-Rate Note - ARM Plans 721/521 & 652/791, Multistate Adjustable-Rate Note - 3 Year ARM, Multistate Adjustable-Rate Note - ARM Plan 650, Multistate Convertible Adjustable-Rate Note - 1 Year Treasury Index, Multistate Adjustable-Rate Note - 5 Year ARM, Multistate Adjustable-Rate Note - WSJ One-Year LIBOR, Multistate Convertible Adjustable-Rate Note - WSJ One-Year LIBOR, Texas Home Equity Note Fixed-Rate - First Lien, Texas Home Equity Fixed/Adjustable-Rate Note - 30-day Average SOFR, Texas Home Equity Fixed/Adjustable-Rate Note - 1 Year Treasury Index - First Lien, Texas Home Equity Fixed/Adjustable-Rate Note - WSJ One-Year LIBOR, Texas Home Equity Convertible Fixed/Adjustable-Rate Note - WSJ One-Year LIBOR, Fannie Mae/Navajo Nation - Single-Family - Mortgage. OCT CME begins clearing SOFR swaps using SOFR PAI and discounting. The $6 billion FNMA issuance was offered in three maturities consisting of six-month notes priced at SOFR+8 bps, 12-month notes at SOFR+12bps, and 18-month notes at SOFR+16bps. LIBOR-Based ARMs. For more information on SOFR ARMs, see WBK’s article on LIBOR transition milestones. New Fannie Mae and Freddie Mac SOFR products use the 30-day Average SOFR index and a 6-month reset period. 04931 - ARM 5/5 Loan: 30-Day Average SOFR 30-Day Average SOFR Compounded average of SOFR over a specified interest period of 30 days. Fannie Mae issues first SOFR-based floating rate note. Nothing in this press release constitutes advice on the merits of buying or selling a particular investment. Standard Conventional ARM Plans To qualify as a Fannie Mae standard conventional ARM, the ARM must have all of the characteristics specified in the Standard ARM Plan Matrix for the specific ARM plan. This was the first-ever issuance of a SOFR security. The floating rate notes, offered in three maturities, were met with strong investor demand from a broad and diverse investor base. In the eight months since Fannie Mae issued the first SOFR FRN s, issuance has topped $100 billion (bln) face value. Fannie Mae, Freddie Mac, and the Federal Home Loan Banks ... (SOFR) Securities (7/26/2019) Fannie Mae Announcement: Purchase of Certain LIBOR Adjustable-Rate Mortgage Loans (5/27/2019) You should not deal in securities unless you understand their nature and the extent of your exposure to risk. Freddie Mac In a bulletin [2] issued on February 5 th , 2020, Freddie Mac announced that it will no longer purchase any LIBOR-indexed ARM with an application-received date on and after … September 30, ... Mac to purchase LIBOR-indexed floating-rate and hybrid loans, regardless of the loan application or the date of the note. The quarterly interest With this milestone, our objective is to accelerate the development of the SOFR market and we encourage other issuers in the debt markets to follow," said Nadine Bates, Senior Vice President and Treasurer of Fannie Mae. SOFR Transaction Marks Milestone for Debt Markets. This press release does not constitute an offer to sell or the solicitation of an offer to buy securities of Fannie Mae. SOFR Transaction Marks Milestone for Debt Markets. adjusted index based on the Secured Overnight Financing Rate (SOFR), the ARR’s recommended alternative to USD LIBOR. 2018 Secured Overnight Financing Rate (SOFR) Security Aggregate Investor Distribution, Numbers may not foot due to rounding* As of July 26, 2018. Fannie Mae will provide further information relating to Multifamily SOFR ARM Prefixes and Subtypes, along with confirmation of the 30-day SOFR index in the coming months. SOFR, which was developed by the Federal Reserve Bank of New York as a dollar-market alternative to the beleaguered London interbank offered rate (LIBOR), has been gaining traction recently with financial institutions.