Reminder: GSE Treasury ARM Retirement

Jun 22, 2021

Topics: Document Updates

As we previously announced, Fannie Mae (FNMA) and Freddie Mac (FHLMC) are retiring adjustable rate mortgage products based on the Constant Maturity Treasury (CMT).

FNMA’s announcement:

“To be eligible for delivery to Fannie Mae, all CMT ARMs must have application dates on or before June 30, 2021. In addition, all CMT ARMs must be purchased as whole loans on or before Sep. 30, 2021 or delivered into MBS pools with issue dates on or before Sep. 1, 2021.”  FNMA LL-2021-05.

FHLMC’s announcement:

“[FHLMC] will not purchase any CMT-indexed ARM that has an Application Received Date of July 1, 2021 or later. In addition, [they] will no longer purchase CMT-indexed ARMs on and after October 1, 2021, regardless of the Application Received Date or Note Date.”  FHLMC Bulletin 2021-4.

Docutech would like to remind lenders of these deadlines, particularly that FNMA and FHLMC will not purchase CMT ARMs with an application date after June 30, 2021.

During this transition period the CMT programs will continue to be available under the FNMA and FHLMC investors, but please be aware of the deadlines set by the GSE’s for their purchase and delivery. Docutech has also created custom programs in ConformX that will continue to utilize the CMT ARM index that can be mapped as desired by clients under the CSTM Custom Programs.

New Custom Programs 

The following CMT ARM programs are now available for use under CSTM Custom Programs:

  • FHA 1 Yr. Treasury ARM – 1/1/5 (114707)
  • FHA 3/1 Treasury ARM – 1/1/5 (114709)
  • FHA 5/1 Treasury ARM – 1/1/5 (114710)
  • FHA 5/1 Treasury ARM – 2/2/6 (114711)
  • FHA 7/1 Treasury ARM – 2/2/6 (114712)
  • FHA 10/1 Treasury ARM – 2/2/6 (114708)
  • Formerly FNMA 1 Yr. Treasury ARM Convertible (1st-5th Adj.) – 1/1/6 (114723)
  • Formerly FNMA 1 Yr. Treasury ARM Convertible (1st-5th Adj.) – 2/2/6 (114724)
  • Formerly FNMA 1 Yr. Treasury ARM Convertible (3rd, 4th, 5th Adj.) – 2/2/6 (114725)
  • Formerly FNMA 1 Yr. Treasury ARM Non-Convertible – 1/1/6 (114726)
  • Formerly FNMA 1 Yr. Treasury ARM Non-Convertible – 2/2/6 (114727)
  • Formerly FNMA 3/1 Treasury ARM Convertible – 2/2/6 (114733)
  • Formerly FNMA 3/1 Treasury ARM Non-Convertible – 2/2/6 (114734)
  • Formerly FNMA 5/1 Treasury ARM Convertible – 2/2/5 (114742)
  • Formerly FNMA 5/1 Treasury ARM Non-Convertible – 2/2/5 (114743)
  • Formerly FNMA 5/1 Treasury ARM Non-Convertible – 2/2/6 (114744)
  • Formerly FNMA 5/1 Treasury ARM Non-Convertible – 5/2/5 (114745)
  • Formerly FNMA 7/1 Treasury ARM Convertible – 5/2/5 (114749)
  • Formerly FNMA 7/1 Treasury ARM Non-Convertible – 5/2/5 (114750)
  • Formerly FNMA 10/1 Treasury ARM Convertible – 5/2/5 (114730)
  • Formerly FNMA 10/1 Treasury ARM Non-Convertible – 5/2/5 (114731)
  • Formerly FNMA 3/3 Treasury ARM Convertible – 2/2/6 (114735)
  • Formerly FNMA 3/3 Treasury ARM Non-Convertible – 2/2/6 (114736)
  • Formerly FNMA 5/5 Treasury ARM Non-Convertible – 2/2/6 (114746)
  • VA 3/1 Treasury ARM – 1/1/5 (114705)
  • VA 5/1 Treasury ARM – 1/1/5 (114706)

The following LIBOR ARM programs are also available for use under CSTM Custom Programs:

  • Formerly FNMA 1 Yr. LIBOR ARM Convertible – 2/2/6 (114721)
  • Formerly FNMA 1 Yr. LIBOR ARM Non-Convertible – 2/2/6 (114722)
  • Formerly FNMA 3/1 LIBOR ARM Convertible – 2/2/6 (114732)
  • Formerly FNMA 3/1 LIBOR ARM Non-Convertible – 2/2/6 (114751)
  • Formerly FNMA 5/1 LIBOR ARM Convertible – 2/2/5 (114737)
  • Formerly FNMA 5/1 LIBOR ARM Convertible – 2/2/6 (114738)
  • Formerly FNMA 5/1 LIBOR ARM Non-Convertible – 2/2/5 (114739)
  • Formerly FNMA 5/1 LIBOR ARM Non-Convertible – 2/2/6 (114740)
  • Formerly FNMA 5/1 LIBOR ARM Non-Convertible – 5/2/5 (114741)
  • Formerly FNMA 7/1 LIBOR ARM Convertible – 5/2/5 (114747)
  • Formerly FNMA 7/1 LIBOR ARM Non-Convertible – 5/2/5 (114748)
  • Formerly FNMA 10/1 LIBOR ARM Convertible – 5/2/5 (114728)
  • Formerly FNMA 10/1 LIBOR ARM Non-Convertible – 5/2/5 (114729)

The programs will be available on ConformX Production on June 23, 2021.  If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.6584.

TW 331321
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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.