Roundtable Expresses Support for House Legislation Addressing Transition from LIBOR to SOFR
July 26, 2021
The Real Estate Roundtable and 17 national trade groups on July 27 submitted a letter to House Financial Services Committee policymakers in support of legislation to address “tough legacy” Libor contracts during the transition away from the benchmark.
- The joint trades letter noted that currently, there is no realistic ability to modify legacy contracts that cannot be converted to a non-LIBOR rate or be amended with adequate fallback language before all Libor maturities are scheduled to stop in June 2023.
- The coalition letter stated, “A state-by-state piecemeal approach does not provide the necessary comprehensive protections that is achievable at the federal level given importance of the issue and the very limited time remaining until LIBOR’s end in less than two years.”
The letter commended Rep. Brad Sherman (D-CA) Sherman and the Committee for providing a meaningful legislative solution in support of the LIBOR transition by providing fair, equitable and consistent treatment for all tough legacy contracts.