July 17, 2019 / 9:39 PM / 2 months ago

Fannie, Freddie to eventually end buying LIBOR mortgages -FHFA's Calabria

NEW YORK, July 17 (Reuters) - Fannie Mae and Freddie Mac will eventually halt purchases of U.S. home loans linked to the London interbank offered rate as that index is set to be phased out after 2021, Mark Calabria, the head of the Federal Housing Finance Agency, told Reuters on Wednesday.

LIBOR is referenced against $200 trillion worth of U.S. financial products, primarily in interest rate derivatives. There are roughly $1 trillion in adjustable-rate mortgages (ARMs), or about 6.5% of all U.S. home loans outstanding, which are reset against it. (Reporting by Richard Leong; Editing by Richard Chang)

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