# Adjustable Rate Mortgages: Transitioning From LIBOR to Alternate Indices
> **US Department of Housing and Urban Development** · Final rule. · Published 2023-03-01 · Effective 2023-03-31 · 88 FR 12822
## Document
- **Document number:** 2023-03952
- **Category:** hud-other
- **Agency:** US Department of Housing and Urban Development
- **Federal Register citation:** 88 FR 12822
- **CFR reference:** 24 CFR 203
- **Publication date:** 2023-03-01
- **Effective date:** 2023-03-31
- **Docket:** Docket No. FR-6151-F-03
## Abstract

HUD is removing the London Interbank Offered Rate (LIBOR) as an approved index for adjustable interest rate mortgages (ARMs), and replacing LIBOR with the Secured Overnight Financing Rate (SOFR) as a Secretary-approved index for newly originated forward ARMs. HUD is also codifying its removal of LIBOR and approval of SOFR as an index for newly-originated Home Equity Conversion Mortgage (HECM or reverse mortgage) ARMs. In addition, HUD is establishing a spread-adjusted SOFR index as the Secretary-approved replacement index to transition existing forward and HECM ARMs off LIBOR. HUD is also making clarifying changes to its HECM Monthly ARM regulation and establishing a lifetime adjustment cap for monthly adjustable rate HECMs. This final rule adopts HUD's October 19, 2022, proposed rule with minor changes.

## Source
- [Federal Register document](https://www.federalregister.gov/documents/2023/03/01/2023-03952/adjustable-rate-mortgages-transitioning-from-libor-to-alternate-indices)
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