Description

Federal Agricultural Mortgage Corporation, often known as Farmer Mac, facilitates a robust secondary market for various types of loans extended to borrowers across the United States. Its operations are structured into four distinct divisions: Farm & Ranch, USDA (United States Department of Agriculture) Guarantees, Rural Utilities, and Institutional Credit. Within the Farm & Ranch segment, the corporation acquires and holds qualifying mortgage loans secured by primary liens on agricultural properties. It also transforms eligible mortgages into securities, guaranteeing the prompt repayment of both principal and interest for these mortgage-backed instruments. Furthermore, this segment offers long-term standby purchase commitments (LTSPCs) for specific qualifying mortgage loans. The USDA Guarantees division focuses on acquiring portions of agricultural and rural development loans that have received backing from the United States Department of Agriculture. Through its Rural Utilities segment, the company either purchases or guarantees securities underpinned by loans provided by cooperative lenders to fund electric or telecommunications infrastructure. This segment also directly acquires qualifying rural utilities loans, offers guarantees on securities supported by these loans, and issues LTSPCs for collective pools of such eligible loans. The Institutional Credit division is responsible for guaranteeing and purchasing the general obligations of various lenders and financial institutions. These obligations must be collateralized by loan portfolios that meet the eligibility criteria of Farmer Mac's Farm & Ranch, USDA Guarantees, or Rural Utilities business areas. Established in 1987, Federal Agricultural Mortgage Corporation maintains its corporate headquarters in Washington, D.C.