Adjustable Rate Mortgages: Transitioning From LIBOR to Alternate Indices
We strongly support HUDʼs decision to adopt the spread-adjusted SOFR as a replacement for the LIBOR in legacy mortgages and to allow the 30- day average SOFR as the index for new mortgages.
Ginnie Mae has already stopped purchasing loans that use the LIBOR, and better alternatives (e.g., the 30-day SOFR) are now available, so it is appropriate for HUD to amend its rules to formally prevent the issuance of any more LIBOR loans.
For these reasons, and as explained more fully in ANPR comments, we strongly support HUDʼs proposal and urge the Department to finalize the rule as proposed.