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The LIBOR is going away.  You more than likely have borrowers that are on this index so it’s important to take action on this news.



additional comments on
"What To Do Now That LIBOR is Going Away"

  1. Dan says:


  2. muchado says:

    LIBOR has not been stable since the financial crisis in 2008. Sure it is low just like all the other indexes, but the volatility is actually higher than even treasury repos. It will likely be replaced by a treasury index, the Euro Overnight Rate, or the Swiss index which are all quite stable. A synthetic LIBOR can be calculated (with about a month delay) which should match closely to the new index. If not then expect the lawsuits to fly.

  3. Ben Vogler says:

    Apparently I have been misspelling the word “Adjustable” for 26 years according to your “Adjustabel Rate Mortgage” slide. 🙂 Also, not sure how many borrowers knew what LIBOR was when they got into an ARM. Might be giving them too much credit here.

  4. Monique says:

    A lot of borrowers with LIBOR loans are jumbo. They either don’t have enough equity to refinance to a fixed OR they were stated income when they purchased and the can’t qualify full doc now. They’re hosed!

  5. Ron says:

    They should just fix it at the fully indexed rate at the time the LIBOR “ends”. My guess is that this is what the CFPB may require… or there will be a whole-lot of class-action lawsuits. Will be interesting!

  6. Huggy Bear says:

    Monique, I guess you would know better than anyone about being hosed. I would like to be your pimp. Call me!

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