Fannie Mae and Freddie Mac (the GSEs) have published updated Adjustable-Rate Mortgage (ARM) Notes and Riders with new index fallback language for new closed-end, residential ARMs. The language is based on the recommended language from the Federal Reserve’s Alternate Reference Rates Committee (ARRC). The new language will provide clarity in the event that a loan index is no longer available. The updated documents must be used for loans closed on or after June 1, 2020.
Link to Announcement from Freddie Mac
Link to Announcement from Fannie Mae