Description

Federal Agricultural Mortgage Corporation, commonly known as Farmer Mac, serves as a crucial secondary market provider for various loans originated for borrowers across the United States. The company’s operations are organized into four distinct divisions: Farm & Ranch, USDA Guarantees, Rural Utilities, and Institutional Credit. Through its Farm & Ranch segment, Farmer Mac acquires and retains eligible mortgage loans that are collateralized by primary liens on agricultural real estate. This segment also transforms qualified mortgage loans into securities, ensuring the timely repayment of both principal and interest on these debt instruments, and issues long-term standby purchase commitments (LTSPCs) for designated eligible loans. The USDA Guarantees segment focuses on purchasing fractional interests in specific agricultural and rural development loans that are backed by the U.S. Department of Agriculture. In the Rural Utilities segment, Farmer Mac procures and guarantees securities that are supported by loans for electric or telecommunications infrastructure, often from cooperative lenders. It further acquires eligible rural utilities loans directly, guarantees securities derived from them, and provides LTSPCs for collective pools of these loans. Finally, the Institutional Credit segment provides guarantees for, and buys, general obligations from various lenders and financial entities, which are typically secured by aggregated pools of loans qualifying under Farmer Mac's Farm & Ranch, USDA Guarantees, or Rural Utilities business categories. Established in 1987, Federal Agricultural Mortgage Corporation maintains its primary office in Washington, D.C.