The Federal Reserve chose SOFR (Secured Overnight Financing Rate) as the Recommended Index to replace the various LIBOR rates.
What is the reason for the index change from LIBOR to SOFR?
On March 5, 2021, the Financial Conduct Authority (“FCA”), the British Agency that administers LIBOR, announced that all USD LIBOR rates will cease to be published after June 30, 2023.
As a result, President Biden signed into law the LIBOR Act on March 15, 2022. This Act is intended to establish a process for transitioning all adjustable rate loans currently using a LIBOR index to a new, reliable index. The Act also gave the Federal Reserve Board the authority to recommend a Replacement Index.
How do I request a payoff statement?
To request a loan payoff statement, use our online form or our automated phone system at (888) 504-6700.