Multifamily Wire
New ARM 5-5 & SOFR-Indexed SARM, ARM 7-6 and Hybrid ARM
August 11, 2020
As the industry transitions from LIBOR, Fannie Mae’s ARM 7-6, Hybrid ARM, Structured ARM (SARM), and our new ARM 5-5 will be indexed to the 30-day Compound Average SOFR, published by the New York Fed as “30-day Average SOFR,” available on September 1, 2020. The new ARM 5-5 provides an embedded cap, an initial 5-year loan term, and an optional extension for a second 5-year term.
Learn More and Key Dates
Upcoming ARM product trainings will be offered at the end of August – invitations will be sent shortly.
| August- September | Trainings on SOFR-indexed products |
| August 27 | ARM 5-5 Guide Update released |
| September 1 | Begin quoting SOFR-indexed SARM, ARM 5-5, ARM 7-6 and the Hybrid ARM |
| September 30 | Final commitment date for LIBOR-indexed ARMs |
| October 1 | All ARM quotes and applications will be SOFR-indexed |
| December 31 | Final purchase date for LIBOR-indexed ARMs |
Access our LIBOR Transition Playbook and Frequently Asked Questions for more information and reach out to your account team with any questions.
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