Fannie Mae LIBOR indices were issued by Fannie Mae and were used as an index for a number adjustable rate mortgage (ARM) products. Fannie Mae published monthly values for five indices: 1-month LIBOR, 3-month LIBOR, 6-month LIBOR, 12-month LIBOR, and 12 Month Average of 1-month LIBOR.
The method for computation of Fannie Mae LIBOR was not disclosed. Fannie Mae LIBOR is independent of BBA LIBOR
Fannie Mae LIBOR has been discontinued since June 2007 and the final values were posted on June 28, 2007. Fannie Mae stopped accepting delivery of any mortgage loans tied to any Fannie Mae LIBOR index that are originated after June 28, 2007 and lenders were required to find a replacement index on or after July 31, 2007.
Fannie Mae, in its news release on March 30, 2007, Fannie Mae did not provide any replacement index and advised the users of Fannie Mae LIBOR to consult their counsel for appropriate replacement indices. However, in their Selling and Servicing Guide Announcement 06-21, "Discontinuance of Fannie Mae LIBOR Indices", Fannie Mae recommended using the BBA LIBOR values published in the Wall Street Journal as replacement indices in most cases.
Updated: Feb 21, 2017