Description

Federal Agricultural Mortgage Corporation, commonly known as Farmer Mac, provides a vital secondary market for diverse loans extended to borrowers throughout the United States. The company operates through four key business divisions: Farm & Ranch, USDA Guarantees, Rural Utilities, and Institutional Credit. Within its Farm & Ranch segment, Farmer Mac acquires and retains mortgage loans secured by first liens on agricultural real estate. It also bundles eligible mortgage loans into securities, offering guarantees for the timely repayment of principal and interest on these instruments, and issues long-term standby purchase commitments for specified eligible mortgage loans. The USDA Guarantees segment focuses on purchasing portions of agricultural and rural development loans that are backed by the U.S. Department of Agriculture. The Rural Utilities segment is involved in both purchasing and guaranteeing securities supported by loans for electric or telecommunications infrastructure, typically made by cooperative lenders. This division also directly acquires eligible rural utilities loans, provides guarantees for their associated securities, and extends long-term standby purchase commitments for pools of such loans. Finally, the Institutional Credit segment offers guarantees for, and acquires, general obligations from lenders and other financial institutions. These obligations are collateralized by loan portfolios that align with Farmer Mac's other business lines, specifically Farm & Ranch, USDA Guarantees, or Rural Utilities. Established in 1987, Federal Agricultural Mortgage Corporation maintains its headquarters in Washington, D.C.