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News Release

FHFA Instructs FHLBanks to Begin Transitioning Away from LIBOR

FOR IMMEDIATE RELEASE
9/27/2019

Washington, D.C. – Today, FHFA sent a letter to the 11 Federal Home Loan Banks instructing them that, as of December 31, 2019, they should stop purchasing investments in assets tied to LIBOR with a contractual maturity beyond December 31, 2021.  As of March 31, 2020, the Federal Home Loan Banks should no longer enter into all other LIBOR-based transactions involving advances, debt, derivatives, or other products with maturities beyond December 31, 2021, with only very limited exceptions granted by FHFA.  While implementing the transition away from LIBOR, FHFA will continue to examine the impact of LIBOR-based transactions on all regulated entities.

FHFA Director Mark Calabria said, “This is an important step in the transition away from LIBOR to a more robust reference rate.  Beginning this process immediately and providing clear timelines will help the Federal Home Loan Banks manage the risks associated with LIBOR in the most safe and sound manner possible.”

Link to Letter

Attachments:

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The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac and the 11 Federal Home Loan Banks. These government-sponsored enterprises provide more than $6.3 trillion in funding for the U.S. mortgage markets and financial institutions. Additional information is available at www.FHFA.gov, on Twitter, @FHFA, YouTube, Facebook, and LinkedIn.
Contacts:

Media: Cynthia Adcock (202) 649-3753

© 2019 Federal Housing Finance Agency