The government has extended a federal financing program in a move to support commercial mortgage-backed securities.
A joint statement today from the Federal Reserve Board and the U.S. Department of the Treasury indicated that the Term Asset-Backed Securities Loan Facility program has been extended.
On legacy CMBS, TALF was extended to March 31, 2010. Legacy securities must be rated AAA. But because of the time involved with new CMBS issuance, the extension was made until June 30, 2010 for newly issued CMBS.
The move is expected to facilitate financing for commercial real estate and promote the flow of credit to businesses and individuals.
“Conditions in financial markets have improved considerably in recent months,” the statement said. “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.”
