Posts Tagged ‘federal reserve’

Fed Extends Liquidity Programs

Wednesday, February 4th, 2009

The Federal Reserve on Tuesday announced the extension through October 30, 2009, of its existing liquidity programs that were scheduled to expire on April 30, 2009. The Board of Governors and the Federal Open Market Committee (FOMC) took these actions in light of continuing substantial strains in many financial markets.

The Board of Governors approved the extension through October 30 of the Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility (AMLF), the Commercial Paper Funding Facility (CPFF), the Money Market Investor Funding Facility (MMIFF), the Primary Dealer Credit Facility (PDCF), and the Term Securities Lending Facility (TSLF). The FOMC also took action to extend the TSLF, which is established under the joint authority of the Board and the FOMC.

In addition, to address continued pressures in global U.S. dollar funding markets, the temporary reciprocal currency arrangements (swap lines) between the Federal Reserve and other central banks have been extended to October 30. This extension currently applies to the swap lines between the Federal Reserve and each of the following central banks: the Reserve Bank of Australia, the Banco Central do Brasil, the Bank of Canada, Danmarks Nationalbank, the Bank of England, the European Central Bank, the Bank of Korea, the Banco de Mexico, the Reserve Bank of New Zealand, the Norges Bank, the Monetary Authority of Singapore, the Sveriges Riksbank, and the Swiss National Bank. The Bank of Japan will consider the extension at its next Monetary Policy Meeting. The Federal Reserve action to extend the swap lines was taken by the Federal Open Market Committee.

The current expiration date for the Term Asset-Backed Securities Loan Facility (TALF) remains December 31, 2009. Other Federal Reserve liquidity facilities, such as the Term Auction Facility (TAF), do not have a fixed expiration date.

The AMLF provides loans to depository institutions to purchase asset-backed commercial paper from money market mutual funds. The CPFF provides a liquidity backstop to U.S. issuers of commercial paper. The MMIFF supports a private-sector initiative to provide liquidity to U.S. money market investors. The PDCF provides discount window loans to primary dealers. Under the TSLF, the Federal Reserve Bank of New York auctions term loans of Treasury securities to primary dealers. The TALF will support the issuance of asset-backed securities collateralized by student loans, auto loans, credit card loans, and loans guaranteed by the Small Business Administration. Under the TAF, Reserve Banks auction term discount window loans to depository institutions.

Federal Reserve’s Position on the Housing Crisis

Wednesday, January 28th, 2009


The Federal Reserve continues to offer plans for owners of distressed real estate.

“The goal of the policy is to avoid preventable foreclosures on residential mortgage assets that are held, owned or controlled by a Federal Reserve Bank,” Fed Chairman Ben Bernanke wrote in a letter Tuesday to Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee.

Under the program, homeowners would be offered lowering the amount owed on the mortgage, reducing the interest rate or lengthening the term of the loan.

Interest Rates: Federal Reserve Auction Yields .25% Rate

Wednesday, January 28th, 2009


On January 26, 2009, the Federal Reserve conducted an auction of $150 billion in 84-day credit through its Term Auction Facility. Following are the results of the auction:

Stop-out rate: 0.250 percent

Total propositions submitted: $136.051 billion
Total propositions accepted: $136.051 billion
Bid/cover ratio: 0.91

Number of bidders: 102

The awarded loans will settle on January 29, 2009, and will mature on April 23, 2009. The stop-out rate shown above will apply to all awarded loans.

Institutions that submitted winning bids will be contacted by their respective Reserve Banks by 11:30 a.m. EST on January 27, 2009. Participants have until 12:30 p.m. EST on January 27, 2009, to inform their local Reserve Bank of any error.

How low can interest rates go?

Federal Reserve Board: Resources for Consumers Mortgage Foreclosures

Wednesday, January 14th, 2009

If you are having difficulty making your mortgage payment, one of the most important things you can do is seek assistance. The following resources provide information and links to agencies and organizations that may be able to help you.

If you are having difficulty making your mortgage payment, one of the most important things you can do is seek assistance. The following resources provide information and links to agencies and organizations that may be able to help you. Specific resources are also available for stabilizing communities; Systemwide information is available from the 12 Reserve Bank Foreclosure Resource Centers.

Department of Housing and Urban Development
Guide to Avoiding Foreclosure
Housing Counseling Agencies
How to Avoid Foreclosure (82 KB PDF)
Department of Justice
Credit Counseling Agencies Approved Pursuant to 11 U.S.C. § 111
Federal Housing Administration
You Can Avoid Foreclosure and Keep Your Home
Federal Reserve System
5 Tips for Protecting Your Home from Foreclosure
Federal Reserve System Foreclosure Resource Centers
Putting Your Home on the Loan Line Is Risky Business
Federal Trade Commission
Credit & Loans
Credit Repair: How to Help Yourself
Foreclosure Rescue Scams: Another Potential Stress for Homeowners
Mortgage Payments Sending You Reeling? Here’s What to Do
Internal Revenue Service
Homeowners Who Lose Homes; Tax Relief Available to Many
Q&A on Home Foreclosure and Debt Cancellation
NeighborWorks® America
Center for Foreclosure Solutions
Consumer Foreclosure Resources
NeighborWorks® America Organizations Locator
Office of the Comptroller of the Currency
Consumer Tips for Avoiding Foreclosure Rescue Scams