The Securities Industry and Financial Markets Association (SIFMA) and the American Securitization Forum (ASF) strongly support today's announcements by the U.S. Treasury and the Federal Reserve, which include plans to create a Term Asset-Backed Securities Loan Facility and to purchase the direct debt obligations and mortgage-backed securities of the government-sponsored enterprises--Fannie Mae, Freddie Mac and Ginnie Mae.
“We strongly support the steps Treasury and the Federal Reserve are taking to buttress the markets, which in turn should help stimulate lending to both consumers and businesses,” said Tim Ryan, CEO of SIFMA. “These are helpful and important steps to address the frozen credit markets and to restore stability to the financial and capital markets.”
“By easing illiquidity in highly credit-worthy securitization instruments, the initiatives announced today should help facilitate the extension of credit to consumers and businesses for the purchase of autos, student loans, and homes,” said George Miller, executive director of the ASF. “Restoring the private securitization markets by restoring lenders’ ability to provide credit to consumers is critical to improving the broader economy. Both the ASF and SIFMA look forward to working with Treasury and the Federal Reserve on these important initiatives.”
