The Federal Reserve Board announced that starting June CMBS and securities backed by insurance premium finance loans will be eligible collateral under the Term Asset-Backed Securities Loan Facility (TALF).
The board acknowledged in a news release that CMBS came to a standstill in mid-2008. By including CMBS as eligible collateral for TALF loans, this will help prevent defaults on economically viable commercial properties, increase the capacity of current holders of maturing mortgages to make more loans, as well as facilitate the sale of distressed properties. CMBS made up for almost half of new commercial mortgage originations in 2007.(/P)(/FONT)