As previously discussed in several articles, the London Interbank Offered Rate (“LIBOR”) is set to no longer be published at the end of 2021. In response, federal regulators and banking industry partners have settled on the Secured Overnight Financing Rate as a replacement for LIBOR. As we near LIBOR’s expiration at the end of this year, please be reminded of the loan programs which have been added as a LIBOR alternative.
DocMagic intends to retire all LIBOR-indexed loan plans and LIBOR-based loan documents at the end of the year. As of 2022, DocMagic will no longer offer any standard documents or loan plans based on LIBOR. Fannie Mae and Freddie Mac previously announced they would stop purchasing such products as of January 1, 2021.
DocMagic has made new standard loan programs available that support the 30-day average Secured Overnight Financing Rate (“SOFR”) index:
|
DocMagic Plan ID |
Description |
|
36SOFR |
3/6 Mo 30-day Avg SOFR 2/1/5 |
|
56SOFR |
5/6 Mo 30-day Avg SOFR 2/1/5 |
|
76SOFR |
7/6 Mo 30-day Avg SOFR 5/1/5 |
|
106SOFR |
10/6 Mo 30-day Avg SOFR 5/1/5 |
|
TX36S |
FHLMC TX Home Equity 3/6 SOFR 2/1/5 Caps |
|
TX56S |
TX Home Equity 5/6 SOFR 2/1/5 Caps |
|
TX76S |
TX Home Equity 7/6 SOFR 5/1/5 Caps |
|
TX106S |
TX Home Equity 10/6 SOFR 5/1/5 Caps |
|
HR56S |
FNMA HomeReady 5/6 Mo 30-day Avg SOFR 2/1/5 Caps |
|
HR76S |
FNMA HomeReady 7/6 Mo 30-day Avg SOFR 5/1/5 Caps |
|
HR106S |
FNMA HomeReady 10/6 Mo 30-day Avg SOFR 5/1/5 Caps |
|
HP56S |
FHLMC Home Possible 5/6 Mo 30-day Avg SOFR 2/1/5 Caps |
|
HP76S |
FHLMC Home Possible 7/6 Mo 30-day Avg SOFR 5/1/5 Caps |
|
HP106S |
FHLMC Home Possible 10/6 Mo 30-day Avg SOFR 5/1/5 Caps |
|
36SNYCEMA |
3/6 SOFR New York CEMA 2/1/5 Caps |
|
FN56SNYC |
5/6 SOFR New York CEMA 2/1/5 Caps |
|
FN76SNYC |
7/6 SOFR New York CEMA 5/1/5 Caps |
|
FN106SNYC |
10/6 SOFR New York CEMA 5/1/5 Caps |
|
HS_36SCTP |
3/6 SOFR Homestyle Construction to Perm 2/1/5 Caps |
|
HS_56SCTP |
5/6 SOFR Homestyle Construction to Perm 2/1/5 Caps |
|
HS_76SCTP |
7/6 SOFR Homestyle Construction to Perm 5/1/5 Caps |
|
HS_106SCTP |
10/6 SOFR Homestyle Construction to Perm 5/1/5 Caps |
|
HSRS36 |
FNMA Homestyle Renovation 3/6 SOFR 2/1/5 Caps |
|
HSRS56 |
FNMA Homestyle Renovation 5/6 SOFR 2/1/5 Caps |
|
HSRS76 |
FNMA Homestyle Renovation 7/6 SOFR 5/1/5 Caps |
|
HSRS106 |
FNMA Homestyle Renovation 10/6 SOFR 5/1/5 Caps |
Additionally, DocMagic has added generic SOFR interest only loan programs that use the 30-day Average SOFR index. It is important to note that these plans do not provide Uniform Instruments as they are not provided nor accepted by Fannie Mae and Freddie Mac.
|
DocMagic Plan ID |
Description |
|
56SIONYCEMA |
5/6 SOFR Interest Only New York CEMA 2/1/5 Caps |
|
76SIONYCEMA |
7/6 SOFR Interest Only New York CEMA 5/1/5 Caps |
|
36SIO |
3/6 Mo 30-day Avg SOFR 10 yr Interest Only 2/1/5 Caps |
|
56SIO |
5/6 Mo 30-day Avg SOFR 10 yr Interest Only 2/1/5 Caps |
|
76SIO |
7/6 Mo 30-day Avg SOFR 10 yr Interest Only 5/1/5 Caps |
|
106SIO |
10/6 Mo 30-day Avg SOFR 10 yr Interest Only 5/1/5 Caps |
|
36SIO2 |
3/6 Mo 30-day Avg SOFR 3 yr Interest Only 2/1/5 Caps |
|
56SIO2 |
5/6 Mo 30-day Avg SOFR 5 yr Interest Only 2/1/5 Caps |
|
76SIO2 |
7/6 Mo 30-day Avg SOFR 7 yr Interest Only 5/1/5 Caps |
To view DocMagic’s previous articles regarding the transition to SOFR, click here and here.
If you have any questions, please contact DocMagic’s Compliance Department.
