The ARRC released an updated LIBOR ARM Resource Guide to support the transition away from USD LIBOR. The LIBOR ARM Transition Resource Guide, which focuses on LIBOR-based adjustable rate mortgages, including home equity products was updated to reflect developments since its original publication date.

The ARRC released guides to support the transition away from USD LIBOR. The LIBOR ARM Transition Resource Guide focuses on LIBOR-based adjustable rate mortgages, including home equity products. The Legacy LIBOR-Based Private Student Loan Transition Resource Guide focuses on LIBOR-based variable rate private student loans that will exist after LIBOR's anticipated discontinuance after end-2021.

The ARRC released conventions for how market participants can voluntarily use SOFR in new student loan products. The conventions recommend that SOFR-based student loan products reference the 30- or 90-day SOFR Average, with a monthly or quarterly reset period, respectively, with rates determined before the interest period, and a margin set by the lender or originator. The ARRC believes this recommendation aligns well with current practices and with lenders, servicers, borrowers, and investors’ expectations for a vibrant market for the foreseeable future.

The ARRC released its final recommended contractual fallback language for new variable rate private student loans. This language was developed for new contracts that reference USD LIBOR to minimize risk and market disruption in the event that LIBOR is no longer usable. The final recommended language follows an associated consultation on the topic (comments received).

• Consultation (Released for comment on March 27, 2020)
• Comments Received (Comment Period Ended on June 15, 2020)
• Final Recommended Language (June 30, 2020)

The ARRC released the LIBOR ARM Transition Resource Guide, which aims to support the transition away from LIBOR to alternative reference rates like the SOFR. The guide focuses on LIBOR-based contracts that will exist after LIBOR is no longer guaranteed after the end of 2021.

The ARRC released the LIBOR-Based Private Student Loan Transition Resource Guide, which aims to support the transition away from LIBOR to alternative reference rates like the SOFR. The guide focuses on LIBOR-based contracts that will exist after LIBOR is no longer guaranteed after the end of 2021.

The ARRC released recommended contractual fallback language for new USD denominated closed-end, residential adjustable-rate mortgages (ARMs). These provisions are for market participants’ voluntary use in new residential ARMs that reference USD LIBOR, and were developed with the goal of reducing the risk of serious market disruption in the event that LIBOR is no longer available. The final recommended language follows an associated consultation on the topic (comments received).

• Consultation (Released for comment on July 12, 2019)
• Comments Received (Comment Period Ended on September 24, 2019)
• Final Recommended Language (November 15, 2019)

The ARRC's Consumer Products Working Group developed this white paper detailing how an average of SOFR can be used in newly issued adjustable-rate mortgages (ARMs) in a structure that is comparable to today's existing ARM loans. A one-page summary of the white paper can be found here.

The ARRC released guiding principles for the development of fallback contract language for consumer products and defined the scope of work for its Consumer Products Working Group. While the Consumer Products Working Group is relying on many of the lessons learned by the ARRC's other working groups that developed recommended fallback language this year for market participants' voluntary use in a range of cash products, this Group's work also faces a unique set of circumstances that require additional consideration given that stakeholders include retail consumers.