CREFC LIBOR Playbook
November 21, 2022.
CREFC has been working diligently with its members to address the implications and operational issues related to transitioning individual floating rate loans from a LIBOR index to the recommended SOFR index.
Why it matters: LIBOR will cease to be published beyond June 30, 2023. In light of that impending deadline, many market participants will be impacted by LIBOR cessation and the transition to SOFR, including but not limited to master servicers, primary servicers, special servicers, trustees, certificate administrators, rating agencies, investors and borrowers.
- The CREFC community through the Servicers Forum compiled guidance via a “LIBOR Playbook” tailored to our servicers’ role in the transitioning of floating rate loans from a LIBOR index to a SOFR index.
These general guidelines seek to address a three-step process which provides guidance on:
- Identifying all LIBOR benchmarked loans in servicing platforms,
- Remediating any loans with deficient replacement language, and
- Providing consistent and timely notices to borrowers and transaction parties.
What’s Next: CREFC expects to finalize and distribute the playbook in the coming weeks. A webinar is also planned to introduce the playbook and delve into the nuances of legacy LIBOR loans.
Contact Kathleen Olin (firstname.lastname@example.org) for more information.