May 27, 2022 — Issue Brief

The LIBOR is a benchmark index, also known as a reference rate, that is commonly used in millions of adjustable rate mortgages, Home Equity Line of Credit (HELOCs), and student loans. Although it is still widely used, the index will no longer be available after June 30, 2023.2

That means creditors and servicers will need to find and implement a replacement index for every
contract still using the Libor at that time. This change should not require consumers to take any action. But they will be notified of the change, and they should be alert for potential errors.

This article describes the issues facing consumers and industry as well as recent legislative and regulatory changes adopted to prepare for the end of the LIBOR.