Commercial real estate lending program picks up - KWWL - Eastern Iowa Breaking News, Weather, Closings

Commercial real estate lending program picks up


WASHINGTON (KWWL) - Investors requested $668.9 million worth of loans this month in a government program aimed at spurring lending in the commercial real estate market.

The Federal Reserve Bank of New York says investors will use the money to buy securities backed by commercial real estate loans that were made months or years ago. None of the money was for newly issued securities.

The Fed hopes the program will boost the availability of commercial real estate loans, help prevent defaults and facilitate the sale of distressed properties.

It is part of larger consumer lending program called the Term-Asset Backed Securities Loan Facility, or TALF, which figures prominently in efforts by the Fed and the Obama administration to ease credit, stabilize the financial system and help the economy.

Online News Director Nate Leding

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