Today, FHLMC published Bulletin 2020-9, which announces FHLMC’s “eligibility, underwriting and delivery requirements for SOFR-indexed ARMs [and] the availability of new ARM Notes and riders specific to the SOFR ARM offering.”
Lenders may immediately begin to underwrite borrowers for their SOFR programs and, beginning October 1, 2020, may submit them to Loan Product Advisor® (if certain conditions are met). Lenders will be able to “take out” 30-day Average SOFR contracts in Loan Selling Advisor® beginning November 16, 2020 (see Bulletin for further details).
FHLMC also provides further details about the future retirements of both LIBOR and CMT ARMs.
We are currently reviewing this Bulletin to determine any impact to our document library and/or systems and evaluating any necessary changes. Any modifications we make will be announced on our website (https://compliance.docutech.com/).
* UPDATE: FNMA has released similar news in FNMA SEL-2020-02.