ARRC Extends Comment Period on Residential ARM Fallback Language

The Alternative Reference Rates Committee yesterday extended the comment deadline for its consultation on draft fallback language for residential adjustable-rate mortgages that reference the London Interbank Offered Rate. The comment deadline is now Sept. 24.

With Libor not guaranteed to be sustained beyond 2021, the ARRC—a group of market participants, including ABA, that was convened by the Fed—continues to develop resources to assist financial institutions with the transition to the Secured Overnight Financing Rate, its preferred Libor replacement.

Read the consultation.