Fannie Mae Announces Replacement Indices for Securities Previously Using 1-month, 3-month and 6-month CD Rate Indices
On December 5, 2013, the Federal Reserve announced that it would cease publication of indices for 1-month, 3-month and 6-month CD rates for the secondary market. Accordingly, effective April 15, 2014, Fannie Mae will discontinue the use of these indices for calculation of interest rates on certain Fannie Mae securities and provide replacement indices to be used for interest rate calculations on such securities. The table below contains the indices and their corresponding discontinued subtypes as well as the replacement indices.
|
Discontinued Index Number and Index Name |
Affiliated ARM Subtypes Being Retired* |
New Index Number and Index Name |
|
38 – 6-month CD rate (weekly) |
G19, G20, GA, GAC |
58 - 6-Month Wall St. Journal LIBOR Rate (Daily) |
|
42 – 6-month CD rate (weekly) |
IC |
45 - 6-Month Wall St. Journal LIBOR Rate (Monthly Average) |
|
77 – 3-month CD rate (rolling 12-month average) |
Y9B, Y9E, Y9F, Y9R, Y9Q, Y9M |
58 - 6-Month Wall St. Journal LIBOR Rate (Daily) |
*New subtypes will be made available on PoolTalk once the replacement indices become effective.
For more information, please refer to Selling/Servicing Notice: Discontinuance of the Federal Reserve Board CD Index. For questions, investors may contact the Fannie Mae Fixed-Income Investor Helpline at 1-800-237-8627 or by e-mail.
Originally published: 03/12/14