On August 17, the Federal Reserve Board and the Treasury Department announced that the expiration date of the Term Asset-Backed Securities Loan Facility (TALF) will be extended to March 31, 2010, for newly issued asset-backed securities (ABS) and legacy commercial mortgage-backed securities (CMBS), and to June 30, 2010, for newly issued CMBS. TALF was previously set to expire on December 31, 2009. The Federal Reserve and Treasury also announced that they will not expand TALF to cover any additional collateral types beyond those that are currently eligible, although they are prepared to reconsider that decision if financial or economic developments warrant doing so. Collateral types that were under consideration but will not be added include non-agency residential mortgage-backed securities, collateralized debt obligations and collateralized loan obligations.
For more information, see the press release issued by the Federal Reserve.