The New York Department of Financial Services has sent a letter to the institutions that it regulates requiring each such institution, by February 7, 2020, to provide to DFS a description of its “plan to address its LIBOR cessation and transition risk.” (LIBOR is the acronym for the London Inter-Bank Offered Rate.)… Continue Reading
LIBOR
CFPB publishes blog on LIBOR elimination
The CFPB recently published a blog post to advise consumers that LIBOR is expected be eliminated sometime after 2021 and that the change will effect some adjustable-rate loans and lines of credit.
In 2017, the United Kingdom’s Financial Conduct Authority (the regulator that oversees the LIBOR panel) announced that it would discontinue the index. … Continue Reading
NY Fed now publishing LIBOR alternative index rate
Creditors currently using the London Inter-Bank Offered Rate (LIBOR) as the index for variable-rate consumer loans should note that the Federal Reserve Bank of New York is now publishing a new index named the Secured Overnight Financing Rate (SOFR).
SOFR is intended to take the place of LIBOR when LIBOR is discontinued (as the United Kingdom’s Financial Conduct Authority has indicated will occur at the end of 2021).… Continue Reading