RV Industry Pushes Government To Free Up RV Loan Money

RV Industry Continues Push to Free Up Money for RV Loans The RV industry continues to push the U.S. Department of Treasury 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 of credit. 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. For more information, visit www.rvda.org. RVDA, The National RV Dealers Association 3930 University Drive - Fairfax, VA 22030-2515 Tel (703)591-7130 - Fax (703)359-0152