US Libor transition panel sets 'aggressive deadline' for mortgage model with alternative rates

20 March 2019 8:23pm
The US Federal Reserve-sponsored panel overseeing the transition from the London Interbank Offered Rate in the United States has asked for a computerized model to be submitted by June that could include an alternative benchmark for mortgages, a panel member said.

“It’s a really aggressive deadline,” Daniel Coates, a Federal Housing Finance Agency official and member of the Fed-backed Alternative Reference Rates Committee, said at a conference last week*.

Once ARRC receives the recommended adjustable-rate mortgage model from its consumer products working group, he said, the full committee will decide whether to issue it for public comment.