NCUA urges CUs to begin LIBOR transition
The NCUA yesterday issued a Letter to Credit Unions instructing credit unions to begin to transition away from using the London Inter-bank Offered Rate (LIBOR) and complete the process no later than Dec. 31, 2021.
In addition to the Letter to Credit Unions, the NCUA included a supervisory letter that provides the framework examiners will use to evaluate a credit union’s risk management processes and planning regarding the transition from LIBOR. The guidance applies to all federally-insured credit unions.
“Failure to prepare for LIBOR disruptions could undermine a federally insured credit union’s financial stability, and safety and soundness,” wrote NCUA Chairman Todd Harper in the letter. “As noted in the Federal Financial Institutions Examination Council’s (FFIEC) July 1, 2020, Joint Statement on Managing the LIBOR Transition, the LIBOR transition is a significant event that credit unions should manage carefully.”
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by Tyler Durden
Thursday, May 20, 2021 - 05:11 AM
In today s FOMC Minutes there was a brief section that received little focus amid the broader analysis of the Fed s tapering, inflation language, yet which could be far more important in coming weeks in light of the violent move higher in overnight reverse repo usage.
This is what the Fed said in its discussion of money market rates and the Fed s balance sheet:
Reserve balances increased further this intermeeting period to a record level of $3.9 trillion. The effective federal funds rate was steady at 7 basis points. However, amid ongoing strong demand for safe short-term investments and reduced Treasury bill supply, the Secured Overnight Financing Rate (SOFR) stood at 1 basis point throughout the period.
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WASHINGTON, May 17, 2021 /PRNewswire/ Fannie Mae (OTCQB: FNMA) priced a $691 million Multifamily DUS
® REMIC under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS™) program on May 12, 2021. FNA 2021-M13 marks the sixth Fannie Mae GeMS issuance of 2021. With the M13, Fannie Mae marks another milestone in the market s transition away from LIBOR with its first CMBS backed by Secured Overnight Financing Rate (SOFR)-indexed collateral, said Dan Dresser, Senior Vice President, Multifamily Capital Markets & Pricing. The Group 1 collateral comprises our ARM 7-6 capped, floating-rate product, which has been SOFR-based since late 2020. The M13 also includes two fixed-rate groups of collateral and marks another GeMS program first with an A3 tranche backed by 12-year collateral. The A3 tranche offers a more call-protected option for investors requiring a more predictable maturity window. We continue to look for ways to attract new investors to th