On April 6, Representatives Vicente Gonzalez (D-TX) and Barry Loudermilk (R-GA) led a bipartisan letter to Federal Reserve Chairman Jerome Powell asking that Term Asset-Backed Loan Facility (“TALF”) eligibility be expanded to include loans to private investors in both agency and private label RMBS, CMBS, and commercial real estate CLOs that were rated investment grade at issuance. While these asset classes were not on the list of eligible assets in the original TALF program, the 2008 TALF was expanded over time to include CMBS. The letter was also signed by Reps. Josh Gottheimer (D-NJ) and Ted Budd (R-NC).

The letter follows an April 1 joint letter from lawmakers urging the Fed to expand the initial TALF to include investment-grade securities backed by personal installment loans as eligible collateral and SFA’s proposal recommending modifications to TALF that reflect the evolution of the securitization market over the past decade.

SFA continues to engage with market participants and policy officials in Washington, D.C. in order to help facilitate a return to normal market functioning as soon as possible. Please continue to reach out to us if we can be of assistance.