Proponents of the TALF (Term Asset-Backed Loan Facility), which rolls out this month, say this could be what opens credit markets and attracts more dollars to the RV industry, says a Southwest RV dealer.
“We are entering a popular season for RV sales,” said Clint Ethington, general manager of Pedata RV Center, Tucson, Ariz. “Our prices are at record lows. We are getting interested buyers left and right. However credit is still an issue.”
Ethington, who has been aggressive on the Internet lately with regard to RV industry issues, noted that the Recreation Vehicle Industry Association (RVIA) hosted a seminar in South Bend, Ind., on March 11 titled “TALF and the RV Industry.” The seminar outlined how the TALF may help the RV industry recover from the economic crisis. Robert Snow, an RV finance and asset backed loan specialist of Capital Carillon, led the seminar and explained in part:
“Under TALF, the United States Treasury is providing $20 billion in credit protection to the Federal Reserve Bank of New York, which will then lend up to $200 billion to investors looking to purchase asset-backed securities (ABS) that are backed by the following loan collateral: RV, auto, motorcycle, credit cards, student loans and SBA loans, as well auto and RV floorplan facilities. Through the effort, financial institutions will be encouraged to make RV floorplan and consumer loans because they can be assured a secondary market exists for those loans when securitized…”
Rep. Joe Donnelly, D-Ind., was also a presenter at the seminar and addressed RV industry leaders. According to RVBusiness.com, Donnelly said, “TALF is expected to be very lucrative and profitable for lenders and investors with the Treasury Department backing up loans in a big way. As the program rolls out this month, our hope is that it will open up credit markets and attract more dollars to the RV industry.”
“We have some good supporters of our industry leading the push forward,” said Ethington. “We applaud their efforts and hope the TALF not only helps our industry, but the economy as a whole.”