Farmer Mac (Federal Agricultural Mortgage Corporation (FAMC)
The Federal Agricultural Mortgage Corporation (Farmer Mac) is a publicly traded, shareholder-owned corporation that was federally chartered by an act of Congress in 1988. Farmer Mac’s mission is to establish a secondary market for agricultural real estate and rural housing mortgage loans, as well as to increase the availability of long-term credit at stable interest rates to American farmers, ranchers and rural homeowners.
To fulfill its mission, Farmer Mac purchases newly originated and seasoned agricultural loans from lenders, issues long-term standby commitments to purchase agricultural mortgage loans, exchanges loans for mortgage-backed securities through a swap program, as well as purchases and guarantees mortgage bonds backed by eligible agricultural mortgage loans. Investopedia Says:
Farmer Mac’s programs and mission are very similar to Fannie Mae’s and Freddie Mac’s programs and missions for traditional residential mortgages. Farmer Macs were established to provide a liquid secondary market for agricultural mortgages; thereby, lowering interest rates and providing a stable flow of funds to agricultural borrowers. This is similar to how Fannie Mae and Freddie Mac were established to provide similar benefits to the residential mortgage market. Related Terms:
Connie Lee - College Construction Loan Insurance Association - CCLIA
Fannie Mae - Federal National Mortgage Association - FNMA
Freddie Mac - Federal Home Loan Mortgage Corp - FHLMC
Ginnie Mae - Government National Mortgage Association - GNMA
Mortgage-Backed Security
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