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LIBOR Transition

Everything you need to know about the LIBOR Transition.

What You Need to Know About the LIBOR Transition

Due to factors outside of C&N's control, the London Interbank Offered Rate (LIBOR), the index used to adjust the interest rate on Adjustable Rate Mortgages (ARMs)*, was discontinued at the end of June, 2023. At that point C&N transitioned to a different index. Here is everything you need to know. 

What changed

  • The reference rate that C&N uses to calculate the variable interest rate of Adjustable Rate Mortgages (ARMs)* was changed from the London Inter-Bank Offered Rate (LIBOR) to USD IBOR, which is comparable to LIBOR and is the suggested industry-wide index to use following the discontinuation of LIBOR.
  • This change only affects residential Adjustable Rate Mortgages* and does not affect Home Equity Lines of Credit (HELOCs) or other types of fixed-rate loans.
  • This change impacts millions of borrowers who have loans from financial institutions throughout the United States.


What this means for you and your mortgage

  • At the end of June 2023, when LIBOR became unavailable, the reference rate changed automatically to USD IBOR. These reference rates are used to determine your adjusted interest rate.
  • Your ARM will continue at your current rate until your next rate change date. At that point, the new rate will be based on USD IBOR instead of LIBOR.
  • This is not a refinance of your mortgage or HELOC; it is merely a change to the benchmark we use to determine your variable interest rate.
  • You will not notice a difference in the way we service your loan. 
  • No other terms of your ARM will change. 


What you need to do

  • No action is needed on your part. 
  • You may refer to your account statement at any time for the current interest rate on your ARM. 
  • Those who have ARMs should have received a notification in the mail letting them know of the changes. If you have any further questions or would like to discuss this in detail, feel free to reach out to our Client Care Center or your Mortgage Lender at any time. 



The interest rate on your ARM will remain variable. It will change with the same frequency as it changed before, based on the terms and conditions of your loan. Any adjustments to your ARM July 1, 2023 or after will be calculated using USD IBOR instead of LIBOR, plus whatever margin was stated in your promissory note. 

As with all ARM loans, your interest rate will be factored into your monthly payment. This can increase, decrease or stay the same whenever an interest rate adjustment is scheduled.

How much your payment will be impacted will not be determined until your next scheduled Change Date, which you can find in the terms of your promissory note. 

This transition from LIBOR only affected residential Adjustable-Rate Mortgages (ARMs).

All other loan types, including Fixed-rate mortgages or Home Equity Lines of Credit, were not be affected. If you are unsure about the structure of your mortgage, please contact our Client Care Center or contact your Mortgage Lender directly.

If you received a communication from C&N and your loan has already been terminated, you will not be affected in any way.

*Adjustable Rate Mortrgage (ARM) Loans opened prior to January 1, 2022

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