A. Yes, besides the WSJ LIBOR lenders may use the monthly FNMA LIBOR (or a replacement index, since the original Fannie Mae LIBOR index has been discontinued* and has only historical values).

* The final Fannie Mae LIBOR values were released on June 28, 2007. Starting from August 1, 2007 we offer the Mortgage-X Monthly LIBOR index as a replacement for the Fannie Mae monthly LIBOR.

A. There is no 'official' replacement. Fannie Mae has advised that lenders should 'consult their own counsel' regarding the appropriate replacement index for the original Fannie Mae LIBOR*.

* Having said that, Fannie Mae provides a methodology to come up with a substitute index value. Thus, the 1-Month Fannie Mae LIBOR Rate is replaced with the 1-Month LIBOR as published in the Wall Street Journal on or after the 25th day of each month. The 3-, 6-Month or 1-Year Fannie Mae LIBOR Rate is replaced with the 3-, 6-Month or 1-Year LIBOR as published in the Wall Street Journal on the first business day of each month.

Besides the 'Fannie Mae recommended', there are several other replacements available, including the Mortgage-X Monthly LIBOR**.

** The Mortgage-X LIBOR is based on the corresponding LIBOR index quoted in the Wall Street Journal (WSJ LIBOR) and is computed by averaging the past month's daily rates of the underlying WSJ LIBOR.

Q. Fannie Mae has its own LIBOR and the Wall Street Journal has their own LIBOR, right?

A. No. The Wall Street Journal does not have it's own LIBOR. They publish yesterday's BBA LIBOR.

Q. What is BBA?

A. British Bankers' Association. The BBA LIBOR is compiled by the BBA daily and is released on or shortly after 11.00 AM each day (London time).

Q. If the Wall Street Journal publishes only yesterday's LIBOR, should I visit the BBA website for the current (today's) LIBOR?

A. No (unless you're willing to pay for it). On the BBA website you will only find the BBA LIBOR rates with a 1-week rolling delay.

You can visit one of the financial websites, including the Wall Street Journal website, that are licensed to display the most recent LIBOR rates.

Q. Could you tell me where you get the rates and why they differ from the WSJ website on 1-17-08? (3 month LIBOR at WSJ is listed as 3.92625 vs yours at 3.95125).

A. The Wall Street Journal (print edition!) publishes yesterday's BBA LIBOR. It was 3.95125 on 1-16-08. The print edition of the WSJ is generally the official source of the index.

Q. I have an ARM loan and my interest rate is due to change tomorrow. Which LIBOR do I need: today's or yesterday's?

A. You need neither today's nor yesterday's LIBOR. Most lenders use the most recent index figure available as of the date 45 days prior to a scheduled interest rate change date. You can visit the BBA website and download the BBA LIBOR rate as of the date 45 days before your scheduled interest rate change date.

Q. What's the difference between the BBA LIBOR and the Fannie Mae LIBOR?

A. Each Fannie Mae LIBOR index (there are 5 of them: 1-month, 3-month, 6-month, 1-year, 12-month avg. of 1-month LIBOR) has only monthly values. The index is determined from information that is available on the second to last business day of each month.

The 15 BBA LIBOR rates (provided in ten currencies) are compiled by the BBA daily and released to the market shortly after 11.00am London time each day.

Q. Can I compute the Fannie Mae LIBOR based on the BBA LIBOR?

A. Fannie Mae doesn't disclose their methodology and how their rates (if at all) are related to the BBA LIBOR rates.

Q. Is it possible to compute the Mortgage-X LIBOR based on the BBA LIBOR?

A. Yes. Each Mortgage-X monthly LIBOR index is based on the corresponding LIBOR index quoted in the Wall Street Journal (they post yesterday's BBA LIBOR) and is computed by averaging the past month's daily rates of the underlying WSJ LIBOR.

Q. Can you provide historical data on the LIBOR since inception?

A. Mortgage-X.com compiles daily historical values for the average of the London Interbank Offered Rates (LIBOR) for 1-month, 3-month, 6-month and 1-year U.S. dollar denominated deposits, as published in The Wall Street Journal (WSJ). Data are available beginning from January, 1986.
  WSJ LIBOR History

The historical monthly Mortgage-X LIBOR rates are posted on our website. Data are available beginning from January, 1986.

The historical BBA LIBOR rates are posted on the BBA website.

We also compile monthly historical values for the average of the London Interbank Offered Rates (LIBOR) for 1-month, 3-month, 6-month and 1-year U.S. dollar denominated deposits, as posted by Fannie Mae (FNMA). Data are available beginning from September, 1989.
  FNMA LIBOR History

Q. Is the 12-month daily historical values an average figure? Because both the disclosure and note that I have refer  to 'the average of interbank offered rates for one year US dollar-denominated deposits in the London market ('LIBOR') as published in the WSJ'. Should I use the 12-month daily figure to determine my mortgage rate?

A. The LIBOR as published in the WSJ, that actually is yesterday's BBA (British Bankers' Association) LIBOR, is an average figure by definition*.

* The BBA maintains a reference panel of several contributor banks. Their market quotes are used by the BBA to construct the BBA LIBOR: the top quartile and bottom quartile market quotes are disregarded, the middle two quartiles are averaged. The resulting average rate is the BBA LIBOR rate.

To determine your mortgage rate you should use the 12-month daily WSJ LIBOR value, plus the exact number of days prior to your interest rate change date used by your lender to determine the date on which the most current index value is selected.

Q. I need to compound the LIBOR since 1972 on a six monthly basis. I am having trouble finding the historic rates for my calculation and would greatly appreciate your assistance.

A. On the BBA website it is stated that ' ... BBA LIBOR fixings did not commence officially before 1 January 1986 ... '. It is further stated that ' ... due to the specific methodology of calculating BBA LIBOR it is not possible to reconstruct rates before the official fixings commenced ... '. The historical data files posted on the BBA website make up the entire back history of BBA LIBOR and ' ... there is no BBA LIBOR data available before this point ... '.
Source: BBA.

Historical Graph (Fannie Mae LIBOR)

The following graph reflects the movement of the 6-Month Monthly Fannie Mae LIBOR vs. 1-Yr CMT and 11th District COFI: