Fed to end commercial mortgage buy up today

The Federal Reserve is set to purchase its final round of existing commercial mortgages today, according to Dow Jones, marking the end of this part of the Term Asset-Backed Securities Loan Facility, or TALF, and raising questions over whether the commercial market is strong enough to go it alone. Although by some experts’ accounts the Fed has played a relatively small role in this sector, Darrell Wheeler, head of commercial mortgages with Amherst Securities, said that the program lifted market morale. “TALF provided psychological support for the market,” Wheeler said. “It served its purpose at the time it was needed.”