Federal Reserve Adds RV Floor Plan Loans, Consumer Loans to TALF

Additional terms and conditions of the Term Asset-Backed Securities Loan Facility (TALF) released by the Federal Reserve indicate that consumer RV loans are now part of the program, according to RVIA.

Previously, the list of securities eligible for purchase by TALF specified only auto loans, student loans, credit card loans, and Small Business Administration (SBA) loans. RVIA, teaming with government affairs consultants, member companies, state RV associations, RVDA and RV dealers, urged Congress, the Federal Reserve Bank of New York, and the Treasury Department to include RV consumer and dealer floor plan loans in the program.

RVIA worked closely with the offices of Congressmen Joe Donnelly (D-IN) and Peter De Fazio (D-OR). Letters from Congressman Mark Souder (R-IN) and the entire Oregon U.S. Congressional delegation, along with Trouble Assets Relief Program (TARP) 2 legislation, were also influential in getting RV loans added to TALF.

Twenty billion dollars of funds from the TARP program are allocated to TALF. The funds will be used to make non-recourse loans to the purchasers of newly issued asset-backed securities. This facility is designed to attract investors back into the securities market and will stimulate demand for new loans to be securitized. As banks see a liquid secondary market developing for RV loans this will stimulate new lending to RV buyers and dealers, according to RVIA.