Since our latest Client Update on the Term Asset-Backed Securities Loan Facility (TALF), the program has evolved in important ways. For example, on Thursday, March 19, the Federal Reserve Board expanded the set of eligible collateral for TALF loans to include securities backed by four additional asset categories:
- Residential mortgage servicing advances (which were added partly as a result of Mayer Brown’s advocacy on behalf of a group of interested clients);
- Loans and leases relating to business equipment;
- Fleet leases; and
- Floorplan loans (expanding beyond auto floorplan, which was already a permitted category).
In addition, while the first round of TALF funding has been completed, details relating to the second round have been announced.
For information and analysis, please see our regularly updated Client Update, "The Rubber Hits the Road for the Term Asset-Backed Securities Loan Facility." A separate Client Update, "Treasury Department Releases Details on Public-Private Partnership Investment Program," addresses additional changes to TALF proposed as part of the PPIP.