Welcome to the latest issue of Mayer Brown’s IBOR Transition Digest—a periodic compendium of global regulatory and market developments and insights on the complex issues confronting financial market participants as they plan to transition from LIBOR and its variants to replacement benchmark interest rates. As attention to IBOR transition accelerates and becomes more focused, it is critical to have access to comprehensive and timely resources about the market.
For additional resources and an introduction to our global cross-practice IBOR Transition Task Force, please visit Mayer Brown’s IBOR Transition portal.
NEWS AND DEVELOPMENTS
United States – Securitization
All Participant Memorandum 20-12: Ineligibility of LIBOR Products for Single-Class MBS
Government National Mortgage Association (Ginnie Mae), 21 September 2020
Announcing that, effective 1 January 2020, (i) all single-family forward ARM loans that rely on LIBOR, including LIBOR-based ARM-to-ARM loan modifications and re-performing LIBOR-based ARMs, will become ineligible for pooling into any Ginnie Mae I or Ginnie Mae II security, and (ii) LIBOR-based adjustable rate home equity conversion mortgage loans that are not securitized as of January 1, 2021, will be ineligible for pooling without regard to their date of origination or the date in which the corresponding FHA case number was assigned.
United Kingdom – Loans
Discontinuation of LIBOR: Guide for Business Customers
UK Finance/Confederation of British Industry, 16 September 2020)
Providing background on both LIBOR and SONIA, as well as a description of different SONIA rates, an explanation of SONIA conventions, and an analysis of market issues such as credit spreads, multi-currency facilities, and the treatment of legacy contracts.
SOFR Loan Documentation: 8 things for lenders and borrowers to consider
IBOR Transition Webinar Series, 23 September 2020
United States 11:00 a.m. to 11:30 a.m. EDT / Europe: 4:00 p.m. to 4:30 p.m GMT
In the latest episode of our LIBOR Transition Webinar Series, please join Mayer Brown Partners David Duffee, Jennie Kratchovil, Adam Wolk and Paul Forrester as we discuss 8 key things that both borrowers and lenders need to focus on when documenting SOFR loans in the face of the Alternative Reference Rates Committee (ARRC) hardwired approach on SOFR.
Replays of all of our IBOR Transition Webinar Series presentations are available via iTunes podcasts, Google play or Spotify, as well as on the IBOR Transition Webinar Series page of our dedicated IBOR Transition portal.
SIFMA Compliance and Legal Virtual Forum
Securities Industry and Financial Markets Association, 23-24 September 2020
As part of this two-day conference, Mayer Brown partner Marlon Paz will lead an on-demand session for participants on Broker-Dealer Issues & Considerations Relating to LIBOR Cessation