Washington Hotline - 05/08/2009 (Plain Text Version)

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In this issue:
CMBS Collateral Expansion Will Improve Liquidity
Implementation of the Tax Credit Assistance Program
Administration Proposes $17 Billion in Budget Cuts
New HUD Secretaries Sworn in This Month
Return to Old ESA Rules Foster Bureaucratic Setbacks
Fed Chairman Expects Improvements in Housing and the Economy
Resources: Impact Fee Webinar Resources; Commercial Diversification Opportunities
Calendar: Conferences and Events

CMBS Collateral Expansion Will Improve Liquidity

This month, the Federal Reserve Board announced that, starting in June, commercial mortgage-backed securities (CMBS) will be eligible for collateral under the Term Asset-Backed Securities Loan Facility (TALF) program.

The inclusion of CMBS as eligible collateral will help:

Prevent defaults on economically viable commercial properties,
increase the capacity of current holders of maturing mortgages to make additional loans,
and facilitate the sale of distressed properties.

The Board is allowing five-year maturities on these loans (compared to three years for all other TALF loans). Up to $100 billion is authorized, with the Board evaluating that limit as the program continues.

View the press release here.

For more information e-mail Claudia Kedda or call her at 800-368-5242 x8352.