Structured Finance Association Supports the Fed LIBOR Proposal with Some Remaining Clarifications Needed

WASHINGTON, August 30, 2022 – The Structured Finance Association (SFA) submitted a letter to the Board of Governors of the Federal Reserve System (Fed) in response to the Fed’s proposed regulation to implement the Adjustable Interest Rate (LIBOR) Act. SFA applauds the Fed’s comprehensive proposal and is strongly supportive of the proposal, with a few imperative remaining clarifications that should be addressed so that consumer and investor contracts transition as seamlessly as Congress intended.

The letter can be viewed here.

“We commend the Fed for their leadership given the complex nature of the issue and the tight timeframe to put forth a regulation,” said Michael Bright, CEO of the Structured Finance Association. “We praise the bipartisan legislation Congress passed earlier this year and have full confidence in the authority the LIBOR Act bestowed on the Fed for its required rulemaking. The Fed’s proposal addresses millions of contracts with varying provisions, so we encourage the Fed to continue collaboration with SFA, consumer groups, and other market participants to shore up a few remaining ambiguities that could impact consumers and investors alike.”

SFA appreciates the Fed’s consideration of its recommendations and is committed to working together to support a smooth and efficient transition for the securitization market and the consumer and business loans it finances as the cessation of LIBOR draws near.