Today, Automated Financial Systems, Inc. (AFS®) announced the completion of full support for the new SOFR compounding in arrears rate methods.
Since the U.S. Alternative Reference Rates Committee (ARRC) announced their preference to replace LIBOR with SOFR, AFS has been at the forefront of the coming transition, working closely with the ARRC and other industry leaders to provide clarifications on transition processes and definition of SOFR methods.
“Through our direct involvement in the market and regulatory affairs for all segments of the commercial lending business, AFS has held a unique position in this process since the beginning,” said Dean Snyder, Executive Vice President of AFS. “Since January 2019, we have been a working member of the ARRC’s Business Loan Working Group. During this time, we have been working hard not only to codify the rate methodology, but to ensure AFS systems were ahead of the curve in supporting the final recommendations.”
Exemplifying the inherent flexibility and agility of AFS solutions, clients have had the ability to support Compounded in Advance, Forward-Term SOFR, and Simple Daily SOFR in Arrears from the start. The code delivery for both methods (rate and balance) for Compounding in Arrears is available now. Many of our clients have already received the updates. AFS clients are receiving these updates as a standard part of our core system with no charge for the capability and no release upgrade required.
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“With this final code delivery and documentation, we have accomplished our goals –support all SOFR rates and methods before the transition deadline, giving our clients the time they need to test and train to ensure a smooth transition,” commented Dean Snyder.
AFS clients who are already calculating simple SOFR deals on AFS systems are excited with the results, and are looking forward to more complex deals with Compounding in Arrears. They are especially excited that once again AFS delivered, as promised. “Thank you for all of you work! We appreciate the amount of effort it took to deliver this functionality on schedule,” said one client.
Gary Harrell, Managing Director of AFS remarks, “Our ability to support both the rate and balance methods for Compounding in Arrears validates what we set out to do when we built AFSVision from the ground up. For 50 years, our singular purpose and mission has been to continuously improve and enhance the business credit delivery model. We are the only true real-time, straight-through process solution and can integrate anywhere along the credit chain to meet our clients’ needs – others claim this but we prove it daily. This delivery highlights both our commitment and our ability to lead in capital market’s lending just as we have led C&I, CRE, Wealth, and Small Business lending since the 1980s. I can think of no better way to cap off our 50th anniversary!”
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