- 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.
- The LIBOR index that is used to determine the interest rate charged for some adjustable-rate loans, was last published on June 30, 2023. The discontinuation of LIBOR affected some adjustable-rate mortgage (ARM) loans and lines of credit that previously used the LIBOR index to determine the interest rate.
- If your adjustable-rate loan was based on the LIBOR index, a new index was or will be assigned to your loan at the next scheduled interest rate change date that occurred or 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, most of SouthState’s LIBOR based loans were transitioned to SOFR as provided by the Act and the final rule adopted by the Board of Governors of the Federal Reserve.
ARM Loan Update
Navigating the LIBOR Transition to SOFR
For our customers with an adjustable-rate mortgage loan previewsly tied to the LIBOR index used to determine the interest rate charged, please read the information below regarding the transition to the SOFR index.