{"abstract":"The majority of adjustable rate mortgages (ARMs) insured by the Federal Housing Administration (FHA) are based on the London Interbank Offered Rate (LIBOR), an interest rate index that is likely to become uncertain after December 31, 2021 and no longer be published after June 30, 2023. In reaction to this uncertainty, HUD has begun to transition away from LIBOR as an approved interest rate index. HUD has also approved the Secured Overnight Financing Rate (SOFR) index in some circumstances. HUD recognizes there may be operational difficulties for mortgagees to implement the change to a new index. HUD is considering a rule that would address a Secretary-approved replacement index for existing loans and provide for a transition date consistent with the cessation of the LIBOR index. HUD is also considering replacing the LIBOR index with the SOFR interest rate index, with a compatible spread adjustment to minimize the impact of the replacement index for legacy ARMs.","action":"Advance notice of proposed rulemaking.","agencies":[{"raw_name":"DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT","name":"Housing and Urban Development Department","id":228,"url":"https://www.federalregister.gov/agencies/housing-and-urban-development-department","json_url":"https://www.federalregister.gov/api/v1/agencies/228","parent_id":null,"slug":"housing-and-urban-development-department"}],"body_html_url":"https://www.federalregister.gov/documents/full_text/html/2021/10/05/2021-21512.html","cfr_references":[{"chapter":null,"citation_url":null,"part":203,"title":24},{"chapter":null,"citation_url":null,"part":206,"title":24}],"citation":"86 FR 54876","comment_url":null,"comments_close_on":"2021-12-06","correction_of":null,"corrections":[],"dates":"Public comment due date: December 6, 2021.","disposition_notes":null,"docket_ids":["Docket No. FR-6151-A-01"],"dockets":[{"supporting_documents":[],"agency_name":"HUD","documents":[{"comment_count":10,"comment_start_date":"2021-10-05","updated_at":"2025-05-20T23:04:08.414-04:00","comment_url":"https://www.regulations.gov/commenton/HUD-2021-0060-0001","allow_late_comments":false,"id":"HUD-2021-0060-0001","comment_end_date":"2021-12-07","regulations_dot_gov_open_for_comment":false}],"supporting_documents_count":0,"id":"HUD-2021-0060","title":"FR–6151–F–03\nAdjustable Rate Mortgages: Transitioning From LIBOR to Alternate Indices"}],"document_number":"2021-21512","effective_on":null,"end_page":54879,"executive_order_notes":null,"executive_order_number":null,"explanation":null,"full_text_xml_url":"https://www.federalregister.gov/documents/full_text/xml/2021/10/05/2021-21512.xml","html_url":"https://www.federalregister.gov/documents/2021/10/05/2021-21512/adjustable-rate-mortgages-transitioning-from-libor-to-alternate-indices","images":{},"images_metadata":{},"json_url":"https://www.federalregister.gov/api/v1/documents/2021-21512?publication_date=2021-10-05","mods_url":"https://www.govinfo.gov/metadata/granule/FR-2021-10-05/2021-21512/mods.xml","not_received_for_publication":null,"page_length":4,"page_views":{"count":4893,"last_updated":"2026-04-05 00:15:04 -0400"},"pdf_url":"https://www.govinfo.gov/content/pkg/FR-2021-10-05/pdf/2021-21512.pdf","presidential_document_number":null,"proclamation_number":null,"public_inspection_pdf_url":"https://public-inspection.federalregister.gov/2021-21512.pdf?1633351526","publication_date":"2021-10-05","raw_text_url":"https://www.federalregister.gov/documents/full_text/text/2021/10/05/2021-21512.txt","regulation_id_number_info":{"2502-AJ51":{"issue":"202210","html_url":"https://www.federalregister.gov/regulations/2502-AJ51/removal-of-libor-as-interest-rate-index-and-approval-of-a-replacement-index-fr-6151-","title":"Removal of LIBOR as Interest Rate Index and Approval of a Replacement Index (FR-6151)","xml_url":"http://www.reginfo.gov/public/do/eAgendaViewRule?pubId=202210&RIN=2502-AJ51&operation=OPERATION_EXPORT_XML","priority_category":"Substantive, Nonsignificant"}},"regulation_id_numbers":["2502-AJ51"],"regulations_dot_gov_info":{"supporting_documents":[],"regulatory_plan":{"html_url":"https://www.federalregister.gov/regulations/2502-AJ51/removal-of-libor-as-interest-rate-index-and-approval-of-a-replacement-index-fr-6151-","title":"Removal of LIBOR as Interest Rate Index and Approval of a Replacement Index (FR-6151)"},"comments_count":10,"agency_id":"HUD","comments_url":"https://www.regulations.gov/docketBrowser?rpp=50&so=DESC&sb=postedDate&po=0&dct=PS&D=HUD-2021-0060","supporting_documents_count":0,"docket_id":"HUD-2021-0060","document_id":"HUD-2021-0060-0001","regulation_id_number":"2502-AJ51","title":"FR–6151–F–03\nAdjustable Rate Mortgages: Transitioning From LIBOR to Alternate Indices","checked_regulationsdotgov_at":"2025-05-22T05:55:06Z"},"regulations_dot_gov_url":null,"significant":false,"signing_date":null,"start_page":54876,"subtype":null,"title":"Adjustable Rate Mortgages: Transitioning From LIBOR to Alternate Indices","toc_doc":"Transitioning from London Interbank Offered Rate to Alternate Indices","toc_subject":"Adjustable Rate Mortgages:\n","topics":[],"type":"Proposed Rule","volume":86}