X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

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.

More from this author

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.