Tweet
So now talf will back cre development. Is this like freddie for strip malls? They did a great job with houses so why not back mall over capacity.
Fed to Begin Lending Program in June
SIGN IN TO E-MAIL
PRINT
REPRINTS
SHARE
By THE ASSOCIATED PRESS
Published: May 1, 2009
WASHINGTON (AP) — The Federal Reserve announced Friday that it would start a much-awaited program in June to encourage commercial real estate lending.
And, to help make the program more attractive to investors, the Fed will provide longer, five-year loans.
Investors would use the money to buy securities backed by commercial real estate loans.
The goal is to expand the availability of these loans, help prevent defaults on commercial properties like office parks and malls and make the sale of distressed properties easier, the Fed said.
The new commercial real estate component is part of a broader program introduced in March, called the Term Asset-Backed Securities Loan Facility, or TALF, that aims to jump-start lending to consumers and small businesses.
It figures prominently in efforts by the Fed and the Obama administration to ease credit stresses and stabilize the financial system. Those are critical elements needed to lift the country out of recession.
The TALF has the potential to generate up to $1 trillion in lending for households and businesses.
Earlier this year, the government said it planned to expand the TALF to include help for commercial real estate lending.
The commercial real estate lending industry welcomed the longer loans.
“A five-year term is more consistent with the longer-term nature of commercial lending and will provide more flexibility to borrowers as they navigate the current real estate cycle,” said Christopher Hoeffel, president of the Commercial Mortgage Securities Association.
Fed to Begin Lending Program in June
SIGN IN TO E-MAIL
REPRINTS
SHARE
By THE ASSOCIATED PRESS
Published: May 1, 2009
WASHINGTON (AP) — The Federal Reserve announced Friday that it would start a much-awaited program in June to encourage commercial real estate lending.
And, to help make the program more attractive to investors, the Fed will provide longer, five-year loans.
Investors would use the money to buy securities backed by commercial real estate loans.
The goal is to expand the availability of these loans, help prevent defaults on commercial properties like office parks and malls and make the sale of distressed properties easier, the Fed said.
The new commercial real estate component is part of a broader program introduced in March, called the Term Asset-Backed Securities Loan Facility, or TALF, that aims to jump-start lending to consumers and small businesses.
It figures prominently in efforts by the Fed and the Obama administration to ease credit stresses and stabilize the financial system. Those are critical elements needed to lift the country out of recession.
The TALF has the potential to generate up to $1 trillion in lending for households and businesses.
Earlier this year, the government said it planned to expand the TALF to include help for commercial real estate lending.
The commercial real estate lending industry welcomed the longer loans.
“A five-year term is more consistent with the longer-term nature of commercial lending and will provide more flexibility to borrowers as they navigate the current real estate cycle,” said Christopher Hoeffel, president of the Commercial Mortgage Securities Association.
Comment