Posted To: MND NewsWire

LIBOR has taken longer to exit the stage than Lawrence Olivier, but the final curtain call is coming for the index. The Consumer Financial Protection Bureau (CFPB) has now finalized the rule for how creditors must select replacements for LIBOR , the London Interbank Offered Rate, once used for adjusting many financial products including derivatives and adjustable-rate mortgages. The CFPB release says no new financial contracts may reference LIBOR as the relevant index after the end of 2021 and it cannot be used for existing financial contracts as of June 2023. LIBOR’s demise began in 2012 after it was revealed that a number of large international banks were falsely inflating or deflating their rates so as to profit from trades, or to give the impression that they were more creditworthy than…(read more)

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Source: Mortgage News Daily