Fannie Mae Announces Replacement for COFI Index

April 27, 2021

On January 31, 2022, the Federal Home Loan Bank of San Francisco will cease publishing the 11th District Monthly Weighted Average Cost of Funds Index (COFI). For any loans or securities indexed to COFI that Fannie Mae has previously purchased or issued, Fannie Mae must select a replacement index to be used after January 31, 2022.

Fannie Mae today announced that it anticipates Freddie Mac will administer a new index as the replacement index for COFI. This new index, called the Enterprise 11th District COFI Replacement Index ("Ent 11th COFI Repl"), will be based on the Federal Cost of Funds Index currently published by Freddie Mac, plus an appropriate spread adjustment.

Enterprise 11th District COFI Replacement Index = Federal COFI + Spread Adjustment

Freddie Mac will publish the Enterprise 11th District COFI Replacement Index on the last business day of every month, starting February 28, 2022 (for the month of January 2022), on Freddie Mac's web page dedicated to the replacement index.

While Fannie Mae has determined the Enterprise 11th District COFI Replacement Index to be the best replacement for loans and securities indexed to COFI, Fannie Mae continues to support the use of the Secured Overnight Financing Rate (SOFR) for new-issue products.

Visit Fannie Mae's COFI Playbook and COFI FAQs to learn more about the COFI transition, including additional details on the spread adjustment, key transition milestones, and recommended actions for stakeholders to consider as they manage the transition. The playbook also includes information specifically for each impacted product: Single-Family and Multifamily Adjustable-Rate Mortgages (ARMs) and Collateralized Mortgage Obligations (CMOs).

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This announcement does not constitute an offer to sell or the solicitation of an offer to buy securities of Fannie Mae. Nothing in this announcement constitutes advice on the merits of buying or selling a particular investment. Any investment decision as to any purchase of securities referred to herein must be made solely on the basis of information contained in Fannie Mae's applicable Prospectus and the Prospectus Supplement and the related legal documentation, and no reliance may be placed on the completeness or accuracy of the information contained in this announcement.

You should not deal in securities unless you understand their nature and the extent of your exposure to risk. You should be satisfied that they are suitable for you in light of your circumstances and financial position. If you are in any doubt you should consult an appropriately qualified financial advisor.