On June 2, Senators Jerry Moran (R-KS), Martha McSally (R-AZ) and Thom Tillis (R-NC) sent a letter to Federal Reserve Chairman Jerome Powell and Treasury Secretary Steve Mnuchin asking that the Term Asset-Backed Loan Facility (“TALF”) be expanded to accept all essential lending sectors of senior-most asset backed securities (ABS) as eligible collateral. The letter specifically cites that personal installment loans and non-agency RMBS should be included as eligible collateral to ensure that lenders can continue to provide adequate financing to borrowers.

The letter follows April 1 and April 6 letters from lawmakers in the House of Representatives urging the Fed to expand the TALF to include investment-grade securities backed by personal installment loans and both agency and private RMBS in order to 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.