MBA Applauds Extension of Term Asset-Backed Securities Loan Facility

WASHINGTON, DC - Michael D. Berman, (top right photo) Vice Chairman of the Mortgage Bankers Association (MBA), issued the following statement after the announcement by the Federal Reserve Board approving the extension of the Term Asset-Backed Loan Facility (TALF) program for newly issued ABS and legacy CMBS through March 31, 2010 and new issue CMBS through June 30th, 2010.

"MBA has consistently advocated for a longer duration for the CMBS TALF program as an essential element for its success. We strongly endorse today's announcement by the Federal Reserve to extend the program in order to promote financial stability and to enhance liquidity in the CMBS market," said Berman.

The Federal Reserve will now make TALF loans against newly issued ABS and legacy CMBS through March 31, 2010, and because new CMBS deals can take a significant amount of time to arrange, the Federal Reserve and Treasury approved TALF lending against newly issued CMBS through June 30, 2010.

The securities already eligible for collateralizing TALF loans include the major types of newly issued, triple-A-rated ABS backed by loans to consumers and businesses, and newly issued and legacy triple-A-rated CMBS.

MBA will continue to closely monitor the implementation of the CMBS TALF program in order to optimize its impact on commercial real estate liquidity.

CONTACT: Sarah Tinsley, (202) 557-2730, stinsley@mortgagebankers.org