Highlights from Structured Finance Association (SFA)

Abstract

Read SFA’s response here [https://structuredfinance org/wp-content/uploads/2020/03/SFA-Response-to-ARRC-Spread-Adjustment-Consultation-March-2020 pdf] March 23, 2020 Structured Finance Association Applauds Fed Action, Asks for Additional Program Eligibility SFA Calls for Fed to Quickly Expand Eligible Collateral Under New TALF WASHINGTON—The Structured Finance Association (SFA) today applauded the Federal Reserve for taking initial steps to support the economy by purchasing Treasury securities and agency mortgage-backed securities (MBS) “in the amounts needed to support smooth market functioning and effective transmission of monetary policy to broader financial conditions and the economy,” as well as establishing the Term Asset-Backed Securities Loan Facility (TALF) “to support the flow of credit to consumers and businesses ” “The Structured Finance Association and its 370 corporate member institutions support today’s action by the Federal Reserve to help address the unique nature of the economic impacts of the COVID-19 pandemic, and we hope this is simply a first step on their part,” said Michael Bright, chief executive officer of SFA The Federal Reserve announcement follows calls on Sunday by SFA for prompt implementation of a program substantially based on the Term Asset-Backed Securities Loan Facility (TALF), which was announced by the Federal Reserve Bank of New York in November 2008 and was intended to make credit available to consumers and small businesses on more favorable terms with a government guarantee Full text of the letter sent Sunday is available online here [https://structuredfinance org/wp-content/uploads/2020/03/106711__113068379v7_SFA-SPARCC-comment-letter_SFALetterhead pdf] With more than 370 member institutions comprised of accounting firms, broker/dealers, diversified financial intermediaries, investors, issuers, IT vendors, law firms, mortgage insurers, other small financial institutions, rating agencies, servicers and trustees, SFA is the leading voice for the securitization industry