- Because of regulatory concerns with manipulation of LIBOR, the industry has discontinued the use of LIBOR as a benchmark index and adopting more reliable indexes for new instruments.
- After June 30, 2023, the LIBOR index that is used to determine the interest rate charged for some adjustable-rate loans, will no longer be available. This will affect some adjustable-rate mortgage (ARM) loans and lines of credit that use the LIBOR index to determine the interest rate.
- If your adjustable-rate loan is based on the LIBOR index, a new index will be assigned to your loan at the next scheduled interest rate change date that occurs on your loan after June 30, 2023.
- The President signed the Adjustable Interest Rate (LIBOR) Act (the “Act”) into law in March 2022. Under its terms, SouthState’s LIBOR based loans will transition to SOFR as provided by the Act and the regulations that are to be created by the end of September 2022.
ARM Loan Update
Navigating the LIBOR Transition to SOFR
For our customers with an adjustable-rate mortgage loan currently tied to the LIBOR index used to determine the interest rate charged, please read the information below regarding the transition from the LIBOR index to a new more reliable index.