The Consumer Financial Protection Bureau (CFPB) recently released new items related to the London Interbank Offered Rate (LIBOR) transition. As a reminder, LIBOR is set to be discontinued after 2021.
First, the CFPB released an updated Consumer Handbook on Adjustable Rate Mortgages (CHARM) to help consumers better understand adjustable rate mortgage loan products. The booklet is intended to provide information to consumers about the features and risks of adjustable rate mortgage loans. Creditors must provide the disclosure or a suitable substitute generally no later than three days following certain ARM applications. Updates to the booklet include removing references to the LIBOR index and reducing the number of pages from 41 to 21.
The Bureau also released a Notice of Proposed Rulemaking (NPRM) concerning the anticipated discontinuation of LIBOR, including proposing examples of replacement indices that meet Regulation Z standards. The NPRM will be open for public comments until August 4, 2020.
Finally, the CFPB issued additional FAQs on other important LIBOR transition topics that do not require amendments to Regulation Z.
Links to the new CHARM document, NPRM, revised FAQs and a short discussion of the LIBOR transition can be found at the CFPB's website. Please contact firstname.lastname@example.org with any questions.