New Details on Multifamily SOFR ARMs
Today Fannie Mae released additional details about our Multifamily Secured Overnight Financing Rate (SOFR) ARM products. This comes as a follow-up to our July 31 announcement.
Beginning September 1, 2020, Fannie Mae will begin quoting, and on October 1, 2020 accept delivery of, Multifamily SOFR ARMs. Fannie Mae’s ARM 7-6, Hybrid ARM, Structured ARM (SARM), and a new ARM 5-5 will all be indexed to the 30-day Average SOFR published by the Federal Reserve Bank of New York. Additional details can be found here.
As a reminder, under FHFA guidance, Fannie Mae will no longer acquire Multifamily ARM loans indexed to LIBOR by the end of 2020.
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.