The Federal Reserve Bank of New York Expands TALF to Include Legacy CMBS

May 21, 2009
The Federal Reserve Bank of New York recently expanded the Term Asset-Backed Securities Loan Facility (the “TALF”) to include qualifying legacy commercial mortgage-backed securities (“CMBS”) issued before January 1, 2009. This update provides an overview of the new TALF program for legacy CMBS, highlighting important criteria the legacy CMBS and underlying mortgage loans must satisfy to be TALF-eligible, as well as significant features of the TALF loans for legacy CMBS themselves. In addition, this update identifies recent changes to the TALF program for newly issued CMBS, and includes a side-by-side comparison of the TALF programs for legacy CMBS and newly issued CMBS.