Fed Extends TALF Lending

The Federal Reserve Board and the Treasury Department today announced that they approved an extension to the Term Asset-Backed Securities Loan Facility (TALF). To promote the flow of credit to businesses and households and to facilitate the financing of commercial properties, the Federal Reserve approved extending TALF loans against newly issued ABS and legacy CMBS through March 31, 2010. Also, TALF lending against newly issued CMBS was approved through June 30, 2010.

SIFMA and the American Securitization Forum issued a press statement applauding the decision to extend TALF. The Association indicated that this decision will provide a longer timeframe for the program to achieve results.

According to the Fed and Treasury, the Fed will continue to monitor financial conditions and will consider in the future whether unusual and exigent circumstances warrant a further extension of the TALF to help promote financial stability and economic growth. Moreover, Fed and Treasury announced that they are holding in abeyance any further expansion in the types of collateral eligible for the TALF.

Click here to view the 8/17 press release of the Board of Governors of the Federal Reserve System regarding TALF.

Click here to view the press statement of SIFMA and ASF.

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