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Additional terms and conditions of the Term Asset-Backed Securities Loan Facility (TALF) released by the Federal Reserve Friday (Feb. 6) indicate that consumer RV loans have been added to the program.
In addition, the Recreation Vehicle Industry Association (RVIA) reported that Capitol Hill sources said that dealer floorplan loans are also now included in TALF.
Previously, the list of securities eligible for purchase by TALF was limited to auto loans, student loans, credit card loans and loans for the Small Business Administration. But RVIA, teaming with government affairs consultants, member companies, state RV associations, the Recreation Vehicle Industry Association (RVDA) and RV dealers, urged Congress, the Federal Reserve Bank of New York and the Treasury Department to include RV consumer and dealer floorplan loans in the program.
In this effort, RVIA worked closely with the offices of Congressmen Joe Donnelly, D-Ind., and Peter De Fazio, D-Ore. Letters from Congressman Souder and the entire Oregon delegation, along with Massachusetts Democratic Rep. Barney Frank’s TARP 2 legislation (which added RVs to TALF but passed only the House and not the Senate), were also very influential in getting RV loans added to TALF.
The $20 billion of funds from the TARP program had been allocated to TALF and will be used to make non-recourse loans to the purchasers of newly issued asset-backed securities.
RVIA said this facility “will attract investors back into the securities market and will stimulate demand for new loans to be securitized.”
RVIA also noted that as banks see a liquid secondary market developing for RV loans this will stimulate new lending to RV buyers and dealers.