Interest Only SOFR
Support has been added for several new Interest Only SOFR products under the “Custom Programs” investor (CSTM) in ConformX.
These two new 3/6 IO SOFR programs:
3/6 SOFR ARM Interest Only for 10 Yrs. (program 114273)
3/6 SOFR ARM Interest Only for 10 Yrs. Non-Assumable (program 114280)
Will trigger this new standard note and rider set to print:
- 10 year IO, 3 year fixed SOFR ARM Note (Cx24058)
- 10 year IO, 3 year fixed SOFR ARM Rider (Cx24059)
These new 5/6 and 7/6 IO SOFR programs:
5/6 SOFR ARM Interest Only for 10 Yrs. (program 114275)
5/6 SOFR ARM Interest Only for 10 Yrs. Non-Assumable (program 114281)
7/6 SOFR ARM Interest Only for 10 Yrs. (program 114277)
7/6 SOFR ARM Interest Only for 10 Yrs. Non-Assumable (program 114283)
Will trigger this new standard note and rider set to print:
- 10 year IO, 5,7 year fixed SOFR ARM Note (Cx24060)
- 10 year IO, 5,7 year fixed SOFR ARM Rider (Cx24061)
These new 3/6 IO SOFR programs:
3/6 SOFR ARM Interest Only for 3 Yrs. (program 114274)
3/6 SOFR ARM Interest Only for 3 Yrs. Non-Assumable (program 114285)
Will trigger this new standard note and rider set to print:
- 3 year IO, 3 year fixed SOFR ARM Note (Cx24062)
- 3 year IO, 3 year fixed SOFR ARM Rider (Cx24063)
The rest of the new IO SOFR programs:
5/6 SOFR ARM Interest Only for 5 Yrs. (program 114276)
5/6 SOFR ARM Interest Only for 5 Yrs. Non-Assumable (program 114282)
7/6 SOFR ARM Interest Only for 7 Yrs. (program 114278)
7/6 SOFR ARM Interest Only for 7 Yrs. Non-Assumable (program 114284)
10/6 SOFR ARM Interest Only for 10 Yrs. (program 114272)
10/6 SOFR ARM Interest Only for 10 Yrs. Non-Assumable (program 114279)
Will trigger this new standard note and rider set to print:
- 5,7,10 year IO, 5,7,10 year fixed SOFR ARM Note (Cx24064)
- 5,7,10 year IO, 5,7,10 year fixed SOFR ARM Rider (Cx24065)
All eight of the new SOFR interest only notes and riders use loan data to populate the interest rate caps and periodic rate adjustment months instead of printing hardcoded values.
Non-Assumable SOFR
Fully amortizing programs have been added under the “Custom Programs” investor in addition to the non-assumable interest only SOFR ARM programs listed above.
This new 3/6 SOFR program:
Modified FNMA 3/6 SOFR ARM – 2/1/5 – Non-Assumable (program 114293)
Will trigger this existing standard note and rider set to print:
- 3441 Note ARM 3/6 30-day Average SOFR Index (Cx23830)
- 3141 Rider ARM 3/6 30-day Average SOFR Index (Cx23831)
These new SOFR programs:
Modified FNMA 5/6 SOFR ARM – 2/1/5 – Non-Assumable (program 114294)
Modified FNMA 7/6 SOFR ARM – 5/1/5 – Non-Assumable (program 114295)
Modified FNMA 10/6 SOFR ARM – 5/1/5 – Non-Assumable (program 114292)
Will trigger this existing standard note and rider set to print:
- 3442 Note ARM 5/6, 7/6, 10/6 30-day Average SOFR Index (Cx23832)
- 3142 Rider ARM 5/6, 7/6, 10/6 30-day Average SOFR Index (Cx23833)
All programs with “Non-Assumable” in the title under the “Custom Programs” investor have been set up to print these existing forms to override the assumablity text contained in the note and rider:
- Addendum to Adjustable Rate Note – Non-Assumable (Cx11414)
- Addendum to Adjustable Rate Rider – Non-Assumable (Cx11415)
SOFR ARM Disclosures
The standard ARM Disclosures have already been modified to support the new SOFR index, and will populate correctly for the interest only and non-assumable programs listed above:
- ARM Disclosure – Investor (Cx13457)
- ARM Disclosure – Lender (Cx14089)
The new SOFR interest only programs and documents are available on ConformX Stage for testing purposes and will be on ConformX Production July 10, 2020. Please note that non-standard interest only forms have not been modified to add support for SOFR. Clients are encouraged to review their non-standard forms for compatibility with SOFR. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
DR 320913