Fed, Treasury Announce TALF Extension

The Federal Reserve and Treasury Department announced August 17 that the Term Asset-Backed Securities Loan Facility (TALF) would be extended beyond the end of 2009.
"Conditions in financial markets have improved considerably in recent months. Nonetheless, the markets for asset-backed securities backed by consumer and business loans and for commercial mortgage-backed securities (CMBS) are still impaired and seem likely to remain so for some time," Treasury and the Fed said in a statement.
Under the new terms of the program, TALF loans can be extended against legacy CMBS until March 31, 2010. TALF lending against newly issued CMBS will remain open until June 30, 2010. Previously, the deadlines for obtaining TALF loans had been set for December 31, 2009.
"The TALF program can be a strong lever to re-open the CMBS market, a critical source of funding for commercial real estate that has been shuttered for the past 18 months," said Steven A. Wechsler, NAREIT president and CEO. "However, in the CMBS market, TALF simply needs more time to work. We are grateful for the Federal Reserve's vision and leadership in deciding to provide that additional measure of time."