LoanStream will transition from the LIBOR Index to the Secured Overnight Financing (SOFR) Index for our NanQ (Non-QM) adjustable-rate mortgage (ARM) programs.
To comply with the required timeframe, please be aware of the following important dates:
Active Loan Pipeline Transition to SOFR
LIBOR Index ARM (NanQ) loans that do not close by December 31st, 2021, will be automatically transitioned to SOFR ARM. A Change of Circumstance (COC) will be generated, and LoanStream will redisclose the loan.
New SOFR ARMs for NanQ (Non-QM) Programs
The new SOFR ARM products will remain 5 or 7 year fixed to adjustable-rate products, with a subsequent 6-month rate change in place of the current yearly rate change, after the fixed-rate period.
Index: SOFR, the 30-day average of the overnight Secured Overnight Financing Rate as published by the Federal Reserve Bank of New York.
Margin: 4.0
Life Floor: The floor is the margin
| Product | First | Subsequent | Lifetime |
|---|---|---|---|
|
5/6 |
2% |
1% |
5% |
|
7/6 |
5% |
1% |
5% |
| Product | First Change Date |
|---|---|
|
5/6 |
The first Change Date is the 61st payment due date. Subsequent Change Dates are every 6 months thereafter. |
|
7/6 |
The first Change Date is the 85th payment due date. Subsequent Change Dates are every 6 months thereafter. |
Non-Convertible
We appreciate your business. Please contact your Account Executive regarding your immediate questions.
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