As posted in a Fannie Mae Selling Guide Announcement dated August 26, 2014, 6-month LIBOR index ARM Plans 1445 and 1446 were retired effective immediately:
“In accordance with revisions to the regulations implementing the Truth-in-Lending Act, a servicer must provide the borrower with certain information about an interest rate adjustment at least 60 (but no more than 120) calendar days before the payment change date of an adjustable-rate mortgage (ARM) loan originated after January 10, 2015. Two standard Fannie Mae ARM plans—ARM Plan 1445 and ARM Plan 1446—use a “first business day” (FBD) look-back period, meaning that the look-back is to the index value in effect on the first business day of the month immediately preceding the month in which the interest-rate change date occurs. Because this look-back period does not provide sufficient time for the servicer to provide the minimum required 60-days notice, both of these ARM plans are being retired and removed from the Standard ARM Plan Matrix.”
ConformX users have not printed loan packages through the Fannie Mae 6-month LIBOR index ARM programs for over a year. Effective tomorrow, August 30, 2014, Fannie Mae program “6 Month WSJ LIBOR ARM Non-Convertible – 1/1/6” (program index 83245) and Fannie Mae program “6 Month WSJ LIBOR ARM Convertible – 1/1/6” (program index 84335) will no longer be available for use in ConformX.
If you have any questions or concerns about the removal of these programs, please contact Client Support at 1.800.497.3584.
August 29, 2014