{"abstract":"HUD is removing the London Interbank Offered Rate (LIBOR) as an approved index for adjustable interest rate mortgages (ARMs), and replacing LIBOR with the Secured Overnight Financing Rate (SOFR) as a Secretary-approved index for newly originated forward ARMs. HUD is also codifying its removal of LIBOR and approval of SOFR as an index for newly-originated Home Equity Conversion Mortgage (HECM or reverse mortgage) ARMs. In addition, HUD is establishing a spread-adjusted SOFR index as the Secretary-approved replacement index to transition existing forward and HECM ARMs off LIBOR. HUD is also making clarifying changes to its HECM Monthly ARM regulation and establishing a lifetime adjustment cap for monthly adjustable rate HECMs. This final rule adopts HUD's October 19, 2022, proposed rule with minor changes.","action":"Final rule.","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/2023/03/01/2023-03952.html","cfr_references":[{"chapter":null,"citation_url":null,"part":203,"title":24},{"chapter":null,"citation_url":null,"part":206,"title":24}],"citation":"88 FR 12822","comment_url":null,"comments_close_on":null,"correction_of":null,"corrections":[],"dates":"Effective date: March 31, 2023.","disposition_notes":null,"docket_ids":["Docket No. FR-6151-F-03"],"dockets":[{"supporting_documents":[],"agency_name":"HUD","documents":[{"comment_count":null,"comment_start_date":null,"updated_at":"2025-05-20T23:04:29.724-04:00","comment_url":"https://www.regulations.gov/commenton/HUD-2021-0060-0016","allow_late_comments":false,"id":"HUD-2021-0060-0016","comment_end_date":null,"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":"2023-03952","effective_on":"2023-03-31","end_page":12829,"executive_order_notes":null,"executive_order_number":null,"explanation":null,"full_text_xml_url":"https://www.federalregister.gov/documents/full_text/xml/2023/03/01/2023-03952.xml","html_url":"https://www.federalregister.gov/documents/2023/03/01/2023-03952/adjustable-rate-mortgages-transitioning-from-libor-to-alternate-indices","images":{},"images_metadata":{},"json_url":"https://www.federalregister.gov/api/v1/documents/2023-03952?publication_date=2023-03-01","mods_url":"https://www.govinfo.gov/metadata/granule/FR-2023-03-01/2023-03952/mods.xml","not_received_for_publication":null,"page_length":8,"page_views":{"count":7861,"last_updated":"2026-04-04 16:15:04 -0400"},"pdf_url":"https://www.govinfo.gov/content/pkg/FR-2023-03-01/pdf/2023-03952.pdf","presidential_document_number":null,"proclamation_number":null,"public_inspection_pdf_url":"https://public-inspection.federalregister.gov/2023-03952.pdf?1677591918","publication_date":"2023-03-01","raw_text_url":"https://www.federalregister.gov/documents/full_text/text/2023/03/01/2023-03952.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":0,"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-2021-0060-0016","regulation_id_number":"2502-AJ51","title":"FR–6151–F–03\nAdjustable Rate Mortgages: Transitioning From LIBOR to Alternate Indices","checked_regulationsdotgov_at":"2025-05-21T02:55:04Z"},"regulations_dot_gov_url":null,"significant":false,"signing_date":null,"start_page":12822,"subtype":null,"title":"Adjustable Rate Mortgages: Transitioning From LIBOR to Alternate Indices","toc_doc":"Transitioning From the London Interbank Offered Rate to Alternate Indices","toc_subject":"Adjustable Rate Mortgages:\n","topics":["Aged","Condominiums","Hawaiian Natives","Home improvement","Indians-lands","Loan programs-housing and community development","Loan programs-housing and community development","Mortgage insurance","Reporting and recordkeeping requirements","Solar energy"],"type":"Rule","volume":88}