RV Industry Continues Push
and the Federal Reserve to include RV dealer floor plan and consumer
loans in the list of securities they will purchase as part of the Term
Asset- Backed Securities Loan Facility (TALF). RVDA and RVIA are
working together to support this effort. The goal is to encourage banks
to make these loans on traditional terms and improve the availability
A bill introduced last week (H.R. 384) addresses the release of the
second half of the $700 billion Troubled Asset Relief Program (TARP)
funds. This bill contains a provision that permits the Treasury Department
to include RV dealer floor plan loans and consumer loans in TALF.
Congressmen Peter De Fazio of Oregon and Joe Donnelly of Indiana
were instrumental in getting the language in the bill.
What would inclusion of RV floor plan and consumer loans in TALF mean for
the RV industry? TALF includes $20 billion from TARP to directly purchase
business and consumer loans that have been packaged into securities.
Once banks see there is a secondary market for these loans -- a market that
does not exist today -- they will be inclined to make the loans to businesses
and consumers, which should improve the availability of credit.
RVDA will continue to keep members updated.