The Federal Reserve today announced an extension until June 30 next year of the Term Asset-Backed Securities Loan Facility for newly issued commercial mortgage-backed securities.
In addition, in a joint statement with the Treasury Department, the Fed announced it was extending TALF through March 31 for newly issued asset-backed securities and legacy commercial mortgage-backed securities, a Fed news release said.
Both parts of the program previously had been authorized through Dec. 31.
In its news release, the Fed said that conditions in financial markets have “improved considerably” recently. “Nonetheless, the markets for asset-backed securities backed by consumer and business loans and for commercial mortgage-backed securities are still impaired and seem likely to remain so for some time,” the news release said.
“The board (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,” the news release said.
Under the TALF program, originally announced in November 2008, the Fed has said it might provide up to $1 trillion in loans in an effort to stimulate credit markets.
As of Aug. 12, the Fed had lent $29.6 billion under the program, according to the Fed’s website.