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Last year, Freddie Mac adopted SOFR and phase out LIBOR, and the move is triggering a trend throughout the lending community. More and more lenders are referencing SOFR in their loan documents, following Freddie Mac’s lead to shift away from LIBOR.

“Freddie Mac’s Multifamily Division has indicated that it will begin purchasing floating-rate loans that use an index based on SOFR by November 1, 2020 at the latest, and that it will cease purchasing LIBOR-indexed floating-rate loans after December 31, 2020,” Jennifer Bojorquez, a partner at Troutman Sanders, tells GlobeSt.com. “In December 2019, it priced a new offering of Structured Pass-Through Certificates, which included a class of floating rate bonds indexed to SOFR.”

Kelsi Maree Borland

Kelsi Maree Borland is a freelance writer and editor living in Los Angeles whose work has appeared in such publications as Travel + Leisure, Angeleno and Los Angeles Magazine.

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