New Interest in TALF Lending Program

Investors are showing a new interest in a government program aimed at spurring lending in the troubled commercial real estate market. The program is part of a larger consumer lending effort called the Term Asset-Backed Securities Loan Facility (TALF), which is a prominent part of the efforts by the Federal Reserve Bank and the Obama administration to ease credit, stabilize the financial system, and help the economy.

In mid-July, investors requested $668.9 million worth of loans 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, which investors showed no interest in when they were offered for the program's debut in June.

Economists say that there is more demand for funding older securities because of the lack of new deals. The Fed hopes the program will boost the availability of commercial real estate loans, help prevent defaults, and facilitate the sale of distressed properties.

Delinquency rates on commercial loans have doubled in the past year to 7 percent as more companies downsize and retailers close their doors.