MBA Releases Templates for Servicer Communications with Existing ARM Borrowers in Preparation for LIBOR Expiration

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WASHINGTON, D.C. (April 26, 2021) – The Mortgage Bankers Association (MBA) released today two templates for residential mortgage servicers’ communications with borrowers with existing London Interbank Offered Rate (LIBOR)-indexed adjustable-rate mortgages (ARMs). LIBOR is the leading reference rate for adjustable-rate single-family mortgages in the U.S. A permanent cessation of most tenors of U.S. dollar LIBOR will occur after June 30, 2023.

“MBA continues to work closely with public and private sector entities to provide members with the resources they need to ensure a smooth transition for the mortgage industry and consumers,” said Pete Mills, MBA’s Senior Vice President of Residential Policy and Member Engagement.

MBA members will have access to an editable version of the templates where they can make adjustments as they see fit. One is structured as a notice for existing ARM borrowers, and the other as a letter to existing ARM borrowers. The templates stress that any index changes will not affect most other terms of an ARM, including the maximum interest rate paid during the life of the loan or the timing of any interest rate reset. When LIBOR is no longer available or is deemed unsuitable, lenders will replace LIBOR with a new index to determine the future interest rate and payment changes to a borrower’s ARM.

In 2019, MBA developed and released a separate template intended for mortgage lenders to share with consumers interested in applying for a LIBOR-indexed ARM. For more information and to download the templates, please visit MBA’s LIBOR Transition Resources page.

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    5 Trends Shaping the Future of Rental Housing After the Pandemic

    There are five trends witnessed during the pandemic that will be shaping the future of rental housing and apartments for years to come, according to National Apartment Association (NAA) President and CEI Bob Pinnegar.

    “The world continues to change as vaccines roll out. During the past year, businesses have adapted, consumers have altered purchasing habits and industries are adjusting to a new normal. The rental housing industry is no different, and apartments will continue evolving in response to the pandemic,” Pinnegar said in a release.

    Here is what Pinnegar said about the five trends he sees, in a recent Washington Post column.

    No. 1: A new outlook on amenities

    “There has been a shift in the amenity world—shareable areas to individual spaces.

    “Shared spaces such as fitness centers and pools are still important, but communities have shifted their focus to in-home amenities like larger kitchens, balconies, in-unit washer and dryers and high-speed Wi-Fi.”

    No. 2: Virtual tours and decision making

    “For obvious reasons, there’s now a larger number of prospective residents virtually searching for new homes.”

    While it was previously only part of the process of selecting a new community, virtual touring has been a catalyst to “invest in new technology, high-quality videos and specialized training to give prospects a more complete picture of the community.”

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