Talk to a McCracken representative:

Update 19 F – SOFR Patch – December 2020

At the end of 2021, the USD LIBOR Index Rates may permanently cease to be published, and the industry recommendation is to move to the Secured Overnight Finance Rate (SOFR) and rate methodologies recommended by the Alternative Reference Rates Committee (ARRC). Strategy’s robust Adjustable Loan module already supports loans that will operate using the Daily Simple SOFR rate or any of the term rates published based on SOFR. The SOFR Use Cases below can be used to test the existing functionality. Additional Use Cases will be provided for compounding in arrears with the patch.

Update 19F contains:

  • Changes to support loans using an interest rate compounded in arrears for both new loans and loans transitioning from LIBOR. These changes include new Adjustable Rate methods and a browser based tool for viewing the daily compounded in arrears interest rate and the components used in the calculation.
  • Modifications to the Pending ARM change file to assist with the entering the scheduled changes needed to transition a loan from LIBOR
  • A Mapping Tool template to streamline the entry of Pending Adjustable Loan Changes.
  • Enhancements to year end reporting to support the IRS reinstatement of the 1099NEC for 2020 reporting year.
  • Vulnerability pages and few bug fixes.