Libor Index Discontinuance: Impact on Residential Adjustable-Rate Mortgages

Financial Service Attorneys Douglas Youngman and Bob Jaworski wrote an article for The Banking Law Journal analyzing recent recommendations regarding the fallback language for new closed-end, residential adjusted rate mortgages (ARMs). The London Interbank Offered Rate Index (Libor Index), commonly used for residential ARMs, is expected to be discontinued in 2021, and the New York Federal Reserve Bank’s Alternative Reference Rates Committee released the recommendations in response. Mr. Youngman and Mr. Jaworski summarize these recommendations and discuss their potential effects on ARMs.

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