View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

Advanced

Search
About
the Fed

News
& Events

Monetary
Policy

Supervision
& Regulation

Payment
Systems

Economic
Research

Data

Consumers
& Communities

Board of Governors of the Federal Reserve System
The Federal Reserve, the central bank of the United States, provides the nation with a
safe, flexible, and stable monetary and financial system.

Home > News & Events > Press Releases

Press Release
March 19, 2009

Board announces that the set of eligible
collateral for loans extended by the Term AssetBacked Loan Facility (TALF) is being expanded
to include four additional categories of assetbacked securities
For release at 3:00 p.m. EDT
Share

The Federal Reserve Board on Thursday announced that the set of
eligible collateral for loans extended by the Term Asset-Backed
Securities Loan Facility (TALF) is being expanded to include four
additional categories of asset-backed securities (ABS):
ABS backed by mortgage servicing advances
ABS backed by loans or leases relating to business equipment
ABS backed by leases of vehicle fleets
ABS backed by floorplan loans
Mortgage servicing advances are loans extended by residential
mortgage servicers to cover payments missed by homeowners.
Accepting ABS backed by mortgage servicing advances should improve
the servicers' ability to work with homeowners to prevent avoidable
foreclosures. The additional new ABS categories complement the
consumer and small business loan categories that were already eligible-ABS backed by auto loans (including auto floorplan loans), credit cards
loans, student loans, and SBA-guaranteed small business loans.
The new categories of collateral will be eligible for the April TALF
funding. Additional details on the April funding will be released on March

24. Subscriptions for the April funding will be accepted on April 7, and
those loans will settle on April 14.
The subscription period for the first TALF funding ends today. The
requested loans will settle on March 25.
The Board authorized the TALF on November 24, 2008, under section
13(3) of the Federal Reserve Act. Under the TALF, the Federal Reserve
Bank of New York extends three-year loans secured by AAA-rated ABS
backed by newly and recently originated loans.
On February 10, 2009, the Board announced that it is prepared to
undertake a significant expansion of the TALF. Today's announcement
marks the first step in that expansion; a number of other asset classes
are under review.
A new term sheet and a revised frequently-asked-questions document
are attached.
Terms and conditions
Frequently asked questions

Last Update: March 19, 2009

BOARD OF GOVERNORS
of the FEDERAL
RESERVE SYSTEM
About the Fed
News & Events
Monetary Policy
Supervision & Regulation
Payment Systems
Economic Research
Data
Consumers & Communities
Financial Stability

TOOLS AND
INFORMATION

STAY CONNECTED

Contact
Publications
Freedom of Information (FOIA)
Office of Inspector General
Budget & Performance | Audit
No FEAR Act
EspaƱol
Website Policies | Privacy
Program
Accessibility

BOARD OF GOVERNORS of the FEDERAL RESERVE SYSTEM
20th Street and Constitution Avenue N.W., Washington, DC 20551