In a letter late last week, the FHFA requested that 11 Federal Home Loan Banks no longer enter into LIBOR-based transactions as of March 31, 2020. The letter comes as the LIBOR transition picks up steam – LIBOR is set to be phased out by the end of 2021. “This is an important step in the transition away from LIBOR to a more robust reference rate,” said FHFA Director Mark Calabria. “Beginning this process immediately and providing clear timelines will help the Federal Home Loan Banks manage the risks associated with LIBOR in the most safe and sound manner possible.”

Read more via Mortgage Professional America.