Institutions seeking funds from the Term Asset-Backed Securities Loan Facility have a wider range of firms they can work with to facilitate the loans, the Federal Reserve Bank of New York said Tuesday.

When the central bank first began making loans through the Talf in March, a firms seeking to receive money would have to work through a primary dealer — one of 19 institutions the New York Fed works with to buy or sell government securities. But the New York Fed is expanding the scope of eligible Talf agents to include the investment banks CastleOak Securities LP, Loop Capital Markets LLC, Wells Fargo Securities LLC and Williams Capital Group LP.

"Establishing a wider network of Talf agents as a distribution mechanism for Talf financing is an important step that should enable a broader range of investors to access the facility, leading to a further improvement in the securitization market," New York Fed President William Dudley said in a press release.

The Talf is designed to unclog credit markets for a range of consumer loans. The program is also targeting the struggling commercial real estate market.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.