Reminder: Transition to SOFR

Sep 18, 2020

Topics: Document Updates

The GSEs will not purchase LIBOR ARMs for applications dated October 1, 2020 or later, or as whole loans after December 31, 2020, or in MBS pools with issue dates after December 1, 2020.  ConformX LIBOR programs and documents will continue to be supported after these dates.

A data integrity warning was added to ConformX in March to alert clients if a LIBOR index is selected and the application date is October 1, 2020 or later:

“FNMA and FHLMC will not purchase LIBOR index-based ARMs with application dates on or after October 1, 2020 (see FNMA LL-2020-01 & FHLMC Bulletin 2020-1).”

If you haven’t requested SOFR programs in ConformX yet, please create a TaskWatch ticket and include a list of the programs from your LOS you plan to use and which SOFR programs you would like them mapped to.  If your SOFR programs are not set up in your LOS, please follow the process provided by your LOS first. This will allow program alias mappings to be added which will then trigger SOFR documents to print when applicable.  You may also contact your Client Relationship Manager directly or contact our Client Support Team at 1-800-497-3584 for assistance.

Here are some of the SOFR programs available in ConformX today:

Fannie Mae

  • 3/6 SOFR ARM – 2/1/5 (program 114232)
  • 5/6 SOFR ARM – 2/1/5 (program 114233)
  • 7/6 SOFR ARM – 5/1/5 (program 114234)
  • 10/6 SOFR ARM – 5/1/5 (program 114231)
  • HomeReady 5/6 SOFR ARM – 2/1/5 (program 114252)
  • HomeReady 7/6 SOFR ARM – 5/1/5 (program 114253)
  • HomeReady 10/6 SOFR ARM – 5/1/5 (program 114251)

Freddie Mac

  • 3/6 SOFR ARM – 2/1/5 (program 114236)
  • 5/6 SOFR ARM – 2/1/5 (program 114237)
  • 7/6 SOFR ARM – 5/1/5 (program 114238)
  • 10/6 SOFR ARM – 5/1/5 (program 114235)
  • Home Possible 5/6 SOFR ARM – 2/1/5 (program 114255)
  • Home Possible 7/6 SOFR ARM – 5/1/5 (program 114256)
  • Home Possible 10/6 SOFR ARM – 5/1/5 (program 114254)

Interest Only

  • 3/6 SOFR ARM Interest Only for 10 Yrs. (program 114273)
  • 5/6 SOFR ARM Interest Only for 10 Yrs. (program 114275)
  • 7/6 SOFR ARM Interest Only for 10 Yrs. (program 114277)
  • 10/6 SOFR ARM Interest Only for 10 Yrs. (program 114272)
  • 3/6 SOFR ARM Interest Only for 3 Yrs. (program 114274)
  • 5/6 SOFR ARM Interest Only for 5 Yrs. (program 114276)
  • 7/6 SOFR ARM Interest Only for 7 Yrs. (program 114278)

Custom Non-Assumable

  • Modified FNMA 3/6 SOFR ARM – 2/1/5 – Non-Assumable (program 114293)
  • 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)
  • 3/6 SOFR ARM Interest Only for 10 Yrs. Non-Assumable (program 114280)
  • 5/6 SOFR ARM Interest Only for 10 Yrs. Non-Assumable (program 114281)
  • 7/6 SOFR ARM Interest Only for 10 Yrs. Non-Assumable (program 114283)
  • 10/6 SOFR ARM Interest Only for 10 Yrs. Non-Assumable (program 114279)
  • 3/6 SOFR ARM Interest Only for 3 Yrs. Non-Assumable (program 114285)
  • 5/6 SOFR ARM Interest Only for 5 Yrs. Non-Assumable (program 114282)
  • 7/6 SOFR ARM Interest Only for 7 Yrs. Non-Assumable (program 114284)

Support

If you have any questions or concerns about SOFR programs, please contact Client Support at 1-800-497-3584.

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The preceding is for informational purposes only and is not and may not be construed as legal advice. No third-party entity may rely upon anything contained herein when making legal and/or other determinations regarding its practices, and such third party should consult with an attorney prior to embarking upon any specific course of action.