The Alternative Reference Rates Committee (ARRC) announced that it it is formally recommending SOFR term rates following the completion of a key change in interdealer trading conventions in July., though the reverse mortgage industry requires FHA action.
As LIBOR replacements emerge with no totally clear successor rate index, a slew of potential replacement indices could fracture the reference rate landscape according to an article at Bloomberg.
The Federal Reserve on Monday announced that it was endorsing a statement encouraging banks to transition away from the U.S. dollar-based London Interbank Offered Rate (LIBOR) index “as soon as practicable,” according to an announcement the federal bank issued on Monday morning. “Given consumer protection, litigation, and reputation risks, the agencies believe entering into new […]
As the world continues to react to the widening spread of the COVID-19 coronavirus, the global economy has so far reacted strongly to the increasing possibility of social disruption that has been brought about by preventive measures being put into place by nations, communities and companies around the world to further contain the virus’ spread. […]
This week, the Federal Reserve took an extraordinary step to contain the economic impact of the global coronavirus outbreak by slashing interest rates in the biggest single rate cut the central bank has ever made. It makes for the biggest one-time cut — half a percentage point — and the bank’s first emergency rate move […]
Last week, the Federal Reserve announced that it would be cutting interest rates for the first time since the onset of the 2008 financial crisis. The move was made in an effort to preserve the growth currently observed in the United States economy. The full effect of the rate cut is still to be determined, […]
The Federal Reserve announced on Wednesday that for the first time since the 2008 financial crisis, it will cut interest rates in order to try and shield the U.S. economy from signs of growing volatility and a potential downturn. In terms of this move’s impact on the reverse mortgage industry, there are still some factors […]