What does Farmer Mac stand for?
the Federal Agricultural Mortgage Corporation
Created in 1988, the Federal Agricultural Mortgage Corporation, or Farmer Mac, provides a secondary market for agricultural real estate mortgage loans, rural housing loans, and rural cooperative loans.
Who established Farmer Mac in 1987?
History. Farmer Mac was chartered by Congress under the Agricultural Credit Act of 1987 in response to the national farm crisis of the 1980s. Farmer Mac’s first major charter revision and expansion of authority to include USDA guaranteed securities.
What is a Farmer Mac guarantee?
Under the fourth business segment, Institutional Credit, Farmer Mac purchases or guarantees general obligations of lenders that are secured by pools of the types of loans eligible for purchase under Farmer Mac’s Farm & Ranch, USDA Guarantees, or Rural Utilities lines of business.
Are Farmer Mac loans guaranteed?
Once approved, Farmer Mac securitizes the loans and issues the Farmer Mac guaranteed AMBS (guaranteed as to timely payment of principal and interest)
Is Farmer Mac government owned?
As a government sponsored enterprise (GSE), what are Farmer Mac’s key ties to the U.S. Government? We are regulated by the Farm Credit Administration (FCA), an independent agency in the executive branch of the United States government.
How does Farmer Mac make money?
If Farmer Mac buys loans or lends against collateral, it earns interest income. If it guarantees loans, it earns fee income. Farmer Mac is careful to say that: “The interest and principal on Farmer Mac’s debt obligations are not guaranteed by, and do not constitute debts or obligations of…the United States…”
What is the difference between Freddie Mac and Fannie Mae?
The primary difference between Freddie Mac and Fannie Mae is where they source their mortgages from. Fannie Mae buys mortgages from larger, commercial banks, while Freddie Mac buys them from much smaller banks. Fannie Mae and Freddie Mac also have differences in lending requirements and programs.
How does a FSA guarantee work?
FSA guarantees up to 95 percent of the loss of principal and interest on a loan. Farmers and ranchers apply to an agricultural lender, which then arranges for the guarantee. The FSA guarantee permits lenders to make agricultural credit available to farmers who do not meet the lender’s normal underwriting criteria.
Is Farmer Mac a government agency?
Although Farmer Mac was created by the U.S. Congress and is regulated by an independent agency in the executive branch of the U.S. government, the U.S. government does not guarantee payments due on Farmer Mac’s guaranteed securities, debt or equity securities, dividend payments on preferred or common stock, or …
Is Farmer Mac publicly traded?
Rather, Farmer Mac, as a publicly-traded corporation, has a broader base of stockholders, including those who do not directly participate in the secondary market provided by Farmer Mac.
How do I know if my mortgage is Fannie Mae or Freddie Mac?
You may contact your servicer (often your bank or lender) to verify that your mortgage loan is owned or guaranteed by Fannie Mae or Freddie Mac, or you may verify it yourself by accessing the Making Home Affordable website.
Are there any forward looking statements in Farmer Mac?
Farmer Mac undertakes no obligation to release publicly the results of revisions to any forward-looking statements expressed on this call to reflect new information or any future events or circumstances, except as otherwise mandated by the SEC. The information contained on this call is not necessarily indicative of future results.
What does Farmer Mac do for rural America?
Farmer Mac is committed to help build a strong and vital rural America by increasing the availability and affordability of credit for the benefit of American agriculture and rural communities.
How to call Farmer Mac for a replay?
To access the replay, dial (877) 539-4649 or (754) 333-7735 and enter code: 155995 This opens in a new window. “I use Farmer Mac to compete. The more products I offer, the more loyal my customer.”
How is Farmer Mac exposed to basis risk?
the degree to which Farmer Mac is exposed to basis risk, which results from fluctuations in Farmer Mac’s borrowing costs relative to market indexes; and. volatility in commodity prices relative to costs of production, changes in U.S. trade policies, or fluctuations in export demand for U.S. agricultural products.