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Blog Post
CFPB Issues Final Rule to Facilitate Transition from LIBOR
Michael Christians • December 28, 2021
As we've blogged about previously, the 1-month, 3-month, 6-month and 12-month USD LIBOR indices will cease publication on June 30, 2023. To facilitate a smooth transition in advance of the cessation date, on December 7, 2021, the Consumer Financial Protection Bureau issued a final rule covering the following:
- When financial institutions must cease referencing LIBOR in connection with new loan contracts,
- Factors to consider when selecting a replacement index for existing credit products,
- Transition requirements for credit card accounts,
- Transition requirements for home equity lines of credit, and
- Transition requirements for adjustable-rate mortgage loans.
Even a high-level summary of the rule is too voluminous to include in a blog. For that reason, Michael Christians Consulting, LLC has prepared a white paper that outlines the major components of the final rule. This white paper is available free of charge and will prove to be a very helpful resource for those financial institutions looking to transition one or more of their existing credit products away from the LIBOR index.
If you are interested in receiving a free copy of the white paper, please contact us at michael@mchristiansconsulting.com.
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Address
5438 South Prairie View Drive
West Des Moines, IA 50266
Phone
319-325-1171
michael@mchristiansconsulting.com
Michael Christians Consulting, LLC
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