In looking over the "Affordable Housing Finance" magazine, I was struck by the very informative article By Jerry Ascierto. He points out “Acronyms like TARP, TALF, PPIP, and CAP litter today’s headlines, but exactly what these programs do-and how they do it-isn’t always easily digestible”.
TARP and TALF - what are they? According to "Apartment Finance Today" says Ascierto, “TARP is aimed at the institutional level-shoring up a financial institution’s health with an infusion of capital, for instance-while TALF is aimed more at the loan-level and charged with reviving the CMBS market.” While “TALF is a loan program for CMBS investors”, there is overlap between these two.
LSP (Legacy Securities Program) is part of PPIP (Public Private Investment Partnership). LSP is involved with loans, such as construction, on a bank’s books. Asciento goes on to say, “The PPIP’s Legacy Loans Program (LLP) is similar to the Legacy Securities Program. The LLP seeks to create a market for legacy loans-loans made by a portfolio lender, which are held on its books-by marrying government capital with private investor capital.”
And finally, if your head isn’t spinning too wildly, CAP (The Capital Assistance Program) “is a TARP program aimed at ensuring that financial institutions have the capital to keep lending, even in a bad economy.”
For even more terms and explanations and to read the entire article, please go to http://www.housingfinance.com/news/aft/061709-aft-A-TARP-TALF-Primer-for-Multifamily-Borrowers.htm
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