Appendix - Government-Sponsored Enterprises

This chapter contains descriptions of the data on the Government-sponsored enterprises listed below. These enterprises were established and chartered by the Federal Government for public policy purposes. They are not included in the Federal Budget because they are private companies, and their securities are not backed by the full faith and credit of the Federal Government. However, because of their public purpose, detailed statements of financial condition are presented, to the extent such information is available, on a basis that is as consistent as practicable with the basis for the budget data of Government agencies.

—The Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation provide assistance to the secondary market for residential mortgages.

—The Federal Home Loan Banks assist thrift institutions, banks, insurance companies, and credit unions in providing financing for housing and community development.

—Institutions of the Farm Credit System, which include the Agricultural Credit Bank and Farm Credit Banks, provide financial assistance to agriculture. They are regulated by the Farm Credit Administration.

—The Federal Agricultural Mortgage Corporation, also a Farm Credit System institution under the regulation of the Farm Credit Administration, provides a secondary market for agricultural real estate, rural housing loans, and certain rural utility loans, as well as for farm and business loans guaranteed by the U.S. Department of Agriculture.

Federal National Mortgage Association

Federal Funds


Identification code 39–4986–0–4–371		2012 actual	2013 CR	2014 est.

	Cumulative balance of direct loans outstanding:
1210	Outstanding, start of year	722,158	654,269	552,500
1251	Repayments: Repayments and prepayments	–67,889	–101,769	–82,875

1290	Outstanding, end of year	654,269	552,500	469,625

The Federal National Mortgage Association (Fannie Mae) is a Government-sponsored enterprise (GSE) in the housing finance market. As a housing GSE, Fannie Mae is a federally chartered, privately owned company with a public mission to provide stability in and to increase the liquidity of the residential mortgage market and to help increase the availability of mortgage credit to low- and moderate-income families and in underserved areas. Fannie Mae engages primarily in two forms of business: guaranteeing residential mortgage securities and investing in portfolios of residential mortgages.

Fannie Mae was established in 1938 to assist private markets in providing a steady supply of funds for housing. Fannie Mae was originally a subsidiary of the Reconstruction Finance Corporation and was permitted to purchase only loans insured by the Federal Housing Administration (FHA). In 1954, Fannie Mae was restructured as a mixed ownership (part government, part private) corporation. Legislation directed the sale of the Government's remaining interest in Fannie Mae in 1968 and completed the transformation to private shareholder ownership in 1970.

Stress in the mortgage markets has eliminated Fannie Mae's stockholder equity, and required ongoing assistance from Treasury under authority provided by the Congress in the Housing and Economic Recovery Act (HERA) of 2008. HERA strengthened housing GSE regulation by creating the Federal Housing Finance Agency (FHFA), a new independent regulator, and provided temporary authority for the U.S. Department of the Treasury to purchase obligations of the housing GSEs. In September 2008, FHFA put Fannie Mae under Federal conservatorship and the U.S. Department of the Treasury entered into a Senior Preferred Stock Purchase Agreement (PSPA) with Fannie Mae to make investments of up to $100 billion in senior preferred stock as required to maintain positive equity. In May 2009, Treasury increased the funding commitments for the PSPA to $200 billion and in December 2009, Treasury modified the funding commitments in the PSPA to the greater of $200 billion or $200 billion plus cumulative net worth deficits experienced during 2010–2012, less any surplus remaining as of December 31, 2012. As of December 31, 2012, Fannie Mae had received $116.1 billion under the PSPA and made $31.4 billion in dividend payments to Treasury. The Budget continues to reflect the GSEs as non-budgetary entities, though their status will continue to be reviewed. All of the current federal assistance being provided to Fannie Mae, including the PSPA, is shown on-budget. For additional discussion and analyses of Fannie Mae, please see the Analytical Perspectives volume of the Budget documents.


Identification code 39–4986–0–4–371		2011 actual	2012 actual

	ASSETS:
	Federal assets: Investments in US securities:
1102	Treasury securities, par	40,755	19,897
1201	Non-Federal assets: Investments in other securities, net	38,415	45,500
	Net value of assets related to direct loans receivable and acquired defaulted guaranteed loans receivable:
1601	Mortgage Loans and Mortgage Related Securities	421,760	389,519
1601	Mortgage Loans and Mortgage Related Securities - Consolidated Trusts	2,583,699	2,642,354

1604	Direct loans and interest receivable, net	3,005,459	3,031,873
1606	Acquired Property, net	12,195	10,278

1699	Value of assets related to direct loans	3,017,654	3,042,151
1801	Other Federal assets: Cash and other monetary assets	117,053	118,702

1999	Total assets	3,213,877	3,226,250
	LIABILITIES:
	Non-Federal liabilities:
2202	Interest payable	12,928	11,732
2203	Debt	744,803	652,971
2203	Debt - Consolidated Trusts	2,446,973	2,543,739
2207	Other	16,964	15,396

2999	Total liabilities	3,221,668	3,223,838
	NET POSITION:
3300	Senior Preferred Stock	104,787	117,149
3300	Private Equity	–112,640	–114,790
3300	Noncontrolling Interest	62	53

3999	Total net position	–7,791	2,412

4999	Total liabilities and net position	3,213,877	3,226,250


Identification code 39–4987–0–4–371		2012 actual	2013 CR	2014 est.

	Cumulative balance of direct loans outstanding:
1210	Outstanding, start of year	2,650,633	2,694,799	2,694,799
1231	Disbursements: Direct loan disbursements	820,509
1251	Repayments: Repayments and prepayments	–776,343

1290	Outstanding, end of year	2,694,799	2,694,799	2,694,799

Prior to January 1, 2010 the mortgages in the pools of loans supporting the mortgage-backed securities guaranteed by Fannie Mae were considered to be owned by the holders of these securities according to the accounting standards for private corporations. Consequently, on the books of Fannie Mae, these mortgages were not considered assets and the securities outstanding were not considered liabilities. New accounting standards implemented on January 1, 2010 require consolidation of many, but not all, of these securities in Fannie Mae's financial statements. For the purposes of this document they are presented as direct loans for mortgage-backed securities. "Disbursements" and "Repayments" are budgetary terms. These items are reported by Fannie Mae as "Issuances" and "Liquidations" respectively.

Federal Home Loan Mortgage Corporation

Federal Funds


Identification code 39–4988–0–4–371		2012 actual	2013 CR	2014 est.

	Cumulative balance of direct loans outstanding:
1210	Outstanding, start of year	679,133	567,966	552,500
1251	Repayments: Repayments and prepayments	–111,167	–15,466	–82,875

1290	Outstanding, end of year	567,966	552,500	469,625

The Federal Home Loan Mortgage Corporation (Freddie Mac) is a Government-sponsored enterprise (GSE) in the housing finance market. As a housing GSE, Freddie Mac is a federally chartered, shareholder-owned, private company with a public mission to provide stability in and increase the liquidity of the residential mortgage market, and to help increase the availability of mortgage credit to low- and moderate-income families and in underserved areas. Freddie Mac engages primarily in two forms of business: guaranteeing residential mortgage securities and investing in portfolios of residential mortgages.

Freddie Mac was established in 1970 under the Emergency Home Finance Act. The Congress chartered Freddie Mac to provide mortgage lenders with an organized national secondary market enabling them to manage their conventional mortgage portfolio more effectively and gain indirect access to a ready source of additional funds to meet new demands for mortgages. Freddie Mac serves as a conduit facilitating the flow of investment dollars from the capital markets to mortgage lenders, and ultimately, to homebuyers.

Stress in the mortgage markets has eliminated Freddie Mac's stockholder equity, and required ongoing assistance from Treasury under authority provided by Congress in the Housing and Economic Recovery Act (HERA) of 2008. HERA strengthened housing GSE regulation by creating the Federal Housing Finance Agency (FHFA), a new independent regulator, and provided temporary authority for the U.S. Department of the Treasury to purchase obligations of the housing GSEs. In September 2008, FHFA put Freddie Mac under Federal conservatorship and the U.S. Department of the Treasury entered into a Senior Preferred Stock Purchase Agreement (PSPA) with Freddie Mac to make investments of up to $100 billion in senior preferred stock as required to maintain positive equity. In May 2009, Treasury increased the funding commitments for the PSPA to $200 billion and in December 2009, Treasury modified the funding commitments in the PSPA to the greater of $200 billion or $200 billion plus cumulative net worth deficits experienced during 2010–2012, less any surplus remaining as of December 31, 2012. As of December 31, 2012, Freddie Mac had received $71.3 billion under the PSPA and made $23.8 billion in dividend payments to Treasury. The Budget continues to reflect the GSEs as non-budgetary entities, though their status will continue to be reviewed. All of the current federal assistance being provided to Freddie Mac, including the PSPA, is shown on-budget. For additional discussion and analyses of Freddie Mac, please see the Analytical Perspectives volume of the Budget documents.


Identification code 39–4988–0–4–371		2011 actual	2012 actual

	ASSETS:
	Federal assets: Investments in US securities:
1102	Treasury securities, par	18,159	21,554
1201	Non-Federal assets: Investments in other securities, net	13,305	47,660
	Net value of assets related to direct loans receivable and acquired defaulted guaranteed loans receivable:
1601	Mortgage Loans and Mortgage Related Securities	456,671	399,450
1601	Mortgage Loans and Mortgage Related Securities - Consolidated Trusts	1,611,580	1,505,576

1604	Direct loans and interest receivable, net	2,068,251	1,905,026
1606	Acquired property, net	5,630	4,502

1699	Value of assets related to direct loans	2,073,881	1,909,528
	Other Federal assets:
1801	Cash and other monetary assets	63,082	36,210
1901	Other assets	3,909	1,551

1999	Total assets	2,172,336	2,016,503
	LIABILITIES:
	Non-Federal liabilities:
2202	Interest payable	8,603	7,528
2203	Debt	674,421	565,036
2203	Debt - Consolidated Trusts	1,488,036	1,432,632
2207	Other	7,267	6,400

2999	Total liabilities	2,178,327	2,011,596
	NET POSITION:
3300	Senior Preferred Stock	66,179	72,336
3300	Private Equity	–72,170	–67,429

3999	Total net position	–5,991	4,907

4999	Total liabilities and net position	2,172,336	2,016,503


Identification code 39–4989–0–4–371		2012 actual	2013 CR	2014 est.

	Cumulative balance of direct loans outstanding:
1210	Outstanding, start of year	1,689,091	1,591,666	1,591,666
1231	Disbursements: Direct loan disbursements	413,062
1251	Repayments: Repayments and prepayments	–510,487

1290	Outstanding, end of year	1,591,666	1,591,666	1,591,666

Prior to January 1, 2010 the mortgages in the pools of loans supporting the mortgage-backed securities guaranteed by Freddie Mac were considered to be owned by the holders of these securities according to the accounting standards for private corporations. Consequently, on the books of Freddie Mac, these mortgages were not considered assets and the securities outstanding were not considered liabilities. New accounting standards implemented on January 1, 2010 require consolidation of many, but not all, of these securities in Freddie Mac's financial statements. For the purposes of this document, they are presented as direct loans for mortgage-backed securities. "Disbursements'' and "Repayments'' are budgetary terms. These items are reported by Freddie Mac as "Issuances" and "Liquidations" respectively.

Federal Home Loan Bank System

Federal Funds


Identification code 39–4990–0–4–371		2012 actual	2013 CR	2014 est.

	Position with respect to appropriations act limitation on obligations:
1131	Direct loan obligations	2,654,585	2,654,585	2,654,585

1150	Total direct loan obligations	2,654,585	2,654,585	2,654,585

	Cumulative balance of direct loans outstanding:
1210	Outstanding, start of year	470,665	463,076	463,076
1231	Disbursements: Direct loan disbursements	2,654,585	2,654,585	2,654,585
1251	Repayments: Repayments and prepayments	–2,659,771	–2,654,585	–2,654,585
1264	Write-offs for default: Other adjustments, net (+ or -)	–2,403

1290	Outstanding, end of year	463,076	463,076	463,076

The Federal Home Loan Bank System is a Government-sponsored enterprise (GSE) in the housing finance market. The Federal Home Loan Banks were chartered by the Federal Home Loan Bank Board under the authority of the Federal Home Loan Bank Act of 1932 (Act). The 12 Federal Home Loan Banks (FHLBanks) are under the supervision of the Federal Housing Finance Agency (FHFA), established by the Congress in 2008. The common mission of FHLBanks is to facilitate the extension of credit through their members. To accomplish this mission, FHLBanks make loans, called "advances", and provide other credit products and services to their over 7,700 member commercial banks, savings associations, insurance companies, and credit unions. Advances and letters of credit must be fully secured by eligible collateral, and long-term advances may be made only for the purpose of providing funds for residential housing finance. However, "community financial institutions'' may also use long-term advances to finance small businesses, small farms, and small agribusinesses. Additionally, specialized advance programs provide funds for community reinvestment and affordable housing programs. All regulated financial depositories, certified community development financial institutions, and insurance companies engaged in residential housing finance are eligible for membership. Each FHLBank operates in a geographic district and together FHLBanks cover all of the United States, as well as the District of Columbia, Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Northern Mariana Islands. The principal source of funds for the lending operation is the sale of consolidated obligations to the public. The consolidated obligations are not guaranteed by the U.S. Government as to principal or interest. Other sources of lendable funds include members' deposits and capital. Funds not immediately needed for advances to members are invested. The capital stock of the Federal Home Loan Banks is owned entirely by the members. Initially the U.S. Government purchased stock of the banks in the amount of $125 million. The banks had repurchased the Government's investment in full by mid-1951. The Act, as amended in 1989, requires each FHLBank to operate an Affordable Housing Program (AHP). Each FHLBank provides subsidies in the form of direct grants or below-market rate advances for members that use the funds for qualifying affordable housing projects. Each of the FHLBanks must set aside annually 10 percent of its previous year's net earnings, subject to an aggregate minimum of $100 million, for the AHP. The Act, as amended in 1999, also required that FHLBanks contribute 20 percent of net earnings annually to assist in the payment of interest on bonds issued by the Resolution Funding Corporation until such time as the total payments are equivalent to a $300 million annual annuity with a final maturity date of April 15, 2030. The FHBLs fulfilled this obligation on August 5, 2011. A rule issued on June 23, 2004 required each FHLBank to register a class of its stock with the Securities and Exchange Commission. All of the Federal Home Loan Banks complied by 2006. For additional discussion and analyses of the FHLBanks, please see the Analytical Perspectives volume of the Budget.


Identification code 39–4990–0–4–371		2011 actual	2012 actual

	ASSETS:
	Federal assets: Investments in US securities:
1102	Treasury securities, par	1,452	2,169
	Non-Federal assets:
1201	Investments in other securities, net	289,022	275,025
1206	Accounts receivable	1,614	1,454
1401	Net value of assets related to direct loans receivable: Direct loans receivable, gross	470,548	462,939
	Other Federal assets:
1801	Cash and other monetary assets	14,251	4,040
1803	Property, plant and equipment, net	220	202
1901	Other assets	1,372	3,153

1999	Total assets	778,479	748,982
	LIABILITIES:
2101	Federal liabilities: REFCORP and Affordable Housing Program	724	743
	Non-Federal liabilities:
2202	Interest payable	2,418	1,864
2203	Debt	702,798	679,710
2207	Deposit funds and other borrowing	17,481	12,579
2207	Other	14,815	12,566

2999	Total liabilities	738,236	707,462
	NET POSITION:
3100	Invested capital	40,243	41,520

4999	Total liabilities and net position	778,479	748,982

Farm Credit System

The Farm Credit System (System) is a Government-sponsored enterprise that provides privately financed credit to agricultural and rural communities. The major functional entities of the System are (1) the Agricultural Credit Bank (ACB); (2) the Farm Credit Banks (FCBs); and (3) the direct-lender associations. Farmer Mac, which is also an institution of the System, is discussed separately below. The history and specific functions of the bank entities are discussed after the presentation of financial schedules for each bank entity. As part of the System, these entities are regulated and examined by the Farm Credit Administration (FCA), an independent Federal agency. The administrative costs of FCA are financed by assessments of System institutions, including Farmer Mac. System banks finance loans primarily from sales of bonds to the public and their own capital funds. The System bonds issued by the banks are not guaranteed by the U.S. Government as to either principal or interest. The bonds are backed by an insurance fund, administered by the Farm Credit System Insurance Corporation (FCSIC), an independent Federal agency that collects insurance premiums from member banks to pay its administrative expenses and fund insurance reserves. All of the banks' current operating expenses are paid from their own income and do not require budgetary resources from the Federal Government.

Federal Funds


Identification code 39–4991–0–4–351		2012 actual	2013 CR	2014 est.

	Position with respect to appropriations act limitation on obligations:
1131	Direct loan obligations	317,273	323,593	330,065

1150	Total direct loan obligations	317,273	323,593	330,065

	Cumulative balance of direct loans outstanding:
1210	Outstanding, start of year	45,028	69,945	69,226
1231	Disbursements: Direct loan disbursements	317,248	323,593	330,065
1251	Repayments: Repayments and prepayments	–292,319	–324,250	–328,220
1263	Write-offs for default: Direct loans	–12	–62	–56

1290	Outstanding, end of year	69,945	69,226	71,015

CoBank, ACB, which is headquartered outside Denver, Colorado, serves eligible cooperatives nationwide and provides funding to Agricultural Credit Associations (ACAs) and Federal Land Credit Associations (FLCAs) in its chartered district. CoBank, ACB, is the only Agricultural Credit Bank (ACB) in the Farm Credit System. The ACB operates under statutory authority that combines the authorities of a Farm Credit Bank (FCB) and a Bank for Cooperatives (BC). In exercising its FCB authority, CoBank's charter limits its lending to 27 ACAs and two FLCAs located in the northeast, central and western regions of the country. As an entity lending to cooperatives, CoBank is chartered to provide credit and related services nationwide to eligible cooperatives primarily engaged in farm supply, grain, marketing, and processing (including sugar, dairy, and ethanol). CoBank also makes loans to rural utilities, including telecommunications companies, and it provides international loans for the financing of agricultural exports.



	2011 act.	2012 act.	2013 est.	2014 est.


Beginning balance of net worth	4,371,376	4,855,255	6,361,670	6,623,771

Capital stock and participations issued	2,422	5,326	417,250	6,462

Capital stock and participations retired	29,900	34,124	394,750	32,200
Net income	725,484	844,422	699,640	727,701
Cash/Dividends/Patronage Distributions	–293,420	–358,491	–395,378	–406,012

Other, net	79,273	1,049,282	–64,661	–17,487

Ending balance of net worth	4,855,255	6,361,670	6,623,771	6,902,235



	2011 act.	2012 act.	2013 est.	2014 est.


Beginning balance of outstanding system obligations	50,414,059	52,767,035	79,079,791	80,250,323



Consolidated systemwide and other bank bonds issued	18,731,232	29,144,296	29,727,182	30,321,726
Consolidated systemwide and other bank bonds retired	17,118,758	26,020,538	28,900,900	26,538,355
Consolidated systemwide notes, net	740,502	–865,056	500,000	500,000

Other (Net)	0	24,054,054	–155,750	–98,000

Ending balance of outstanding system obligations	52,767,035	79,079,791	80,250,323	84,435,694


Identification code 39–4991–0–4–351		2011 actual	2012 actual

	ASSETS:
	Non-Federal assets:
1201	Cash and investment securities	16,015	18,835
1206	Accrued interest receivable on loans	332	395
	Net value of assets related to direct loans receivable and acquired defaulted guaranteed loans receivable:
1601	Direct loans, gross	45,028	69,945
1603	Allowance for estimated uncollectible loans and interest (-)	–391	–375

1699	Value of assets related to direct loans	44,637	69,570
1803	Other Federal assets: Property, plant and equipment, net	1,351	1,456

1999	Total assets	62,335	90,256
	LIABILITIES:
2104	Federal liabilities: Resources payable	872	1,133
	Non-Federal liabilities:
2201	Consolidated systemwide and other bank bonds	52,767	79,080
2201	Notes payable and other interest-bearing liabilities	3,528	3,340
2202	Accrued interest payable	313	341

2999	Total liabilities	57,480	83,894
	NET POSITION:
3300	Cumulative results of operations	4,855	6,362

4999	Total liabilities and net position	62,335	90,256


Identification code 39–4992–0–4–371		2012 actual	2013 CR	2014 est.

	Position with respect to appropriations act limitation on obligations:
1131	Direct loan obligations	210,249	192,466	203,241

1150	Total direct loan obligations	210,249	192,466	203,241

	Cumulative balance of direct loans outstanding:
1210	Outstanding, start of year	109,777	97,404	101,652
1231	Disbursements: Direct loan disbursements	220,860	194,251	205,425
1251	Repayments: Repayments and prepayments	–233,160	–189,910	–199,477
1263	Write-offs for default: Direct loans	–73	–93	–81

1290	Outstanding, end of year	97,404	101,652	107,519

The Agricultural Credit Act of 1987 (1987 Act) required the Federal Land Banks (FLBs) and Federal Intermediate Credit Banks (FICBs) to merge into a Farm Credit Bank (FCB) in each of the 12 Farm Credit districts. FCBs operate under statutory authority that combines the prior authorities of an FLB and of an FICB. No merger occurred in the Jackson district in 1988 because the FLB of Jackson was in receivership. Pursuant to section 410(e) of the 1987 Act, as amended by the Farm Credit Banks Safety and Soundness Act of 1992, FICB of Jackson merged with FCB of Columbia on October 1, 1993. Mergers and consolidations of FCBs across district lines, which began in 1992, have continued to date. As a result of this restructuring activity, three FCBs, headquartered in the following cities, remain as of October 1, 2012: AgFirst Farm Credit Bank, Columbia, South Carolina; AgriBank, FCB, St. Paul, Minnesota; and FCB of Texas, Austin, Texas.

FCBs serve as discount banks and, as of October 1, 2012, provided funds to one Federal Land Credit Association (FLCA) and 52 Agricultural Credit Associations (ACAs). These direct-lender associations, in turn, primarily make short- and intermediate-term production loans and long-term real estate loans to eligible farmers and ranchers, farm-related businesses, and rural homeowners. FCBs can also lend to other financing institutions, including commercial banks, as authorized by the Farm Credit Act of 1971, as amended.

All the capital stock of FICBs, from their organization in 1923 to December 31, 1956, was held by the U.S. Government. The Farm Credit Act of 1956 provided a long-range plan for the eventual ownership of the FICBs by the production credit associations and the gradual retirement of the Government's investment in the banks. This retirement was accomplished in full on December 31, 1968. The last of the Government capital that had been invested in FLBs was repaid in 1947.






	2011 act.	2012 act.	2013 est.	2014 est.





Beginning balance of net worth	8,129,468	8,594,783	7,825,826	8,302,874

Capital stock and participations issued	154,288	176,055	179,972	188,613

Capital stock and participations retired	180,529	263,410	268,884	274,166
Surplus Retired	–600	–307	0	0
Net income	1,201,132	1,167,718	977,137	943,017
Cash/Dividends/Patronage Distributions	–710,466	–640,319	–427,938	–404,562

Other, net	290	–1,209,308	16,761	141,371

Ending balance of net worth	8,594,783	7,825,826	8,302,874	8,897,147






	2011 act.	2012 act.	2013 est.	2014 est.





Beginning balance of outstanding system obligations	126,924,149	129,243,811	112,291,707	118,173,338



Consolidated systemwide and other bank bonds issued	330,460,324	607,228,549	224,109,096	236,006,530

Consolidated systemwide and other bank bonds retired	328,912,956	622,551,322	218,227,465	229,562,264
Consolidated systemwide notes, net	772,294	–1,629,331	0	0

Other (Net)	0	0	0	0

Ending balance of outstanding system obligations	129,243,811	112,291,707	118,173,338	124,617,604


Identification code 39–4992–0–4–371		2011 actual	2012 actual

	ASSETS:
	Non-Federal assets:
1201	Cash and investment securities	29,355	23,990
1206	Accrued Interest Receivable	698	537
	Net value of assets related to direct loans receivable and acquired defaulted guaranteed loans receivable:
1601	Direct loans, gross	109,778	97,404
1603	Allowance for estimated uncollectible loans and interest (-)	–74	–72

1699	Value of assets related to direct loans	109,704	97,332
1803	Other Federal assets: Property, plant and equipment, net	779	594

1999	Total assets	140,536	122,453
	LIABILITIES:
2104	Federal liabilities: Resources payable	506	321
	Non-Federal liabilities:
2201	Consolidated systemwide and other bank bonds	129,244	112,292
2201	Notes payable and other interest-bearing liabilities	1,735	1,587
2202	Accrued interest payable	456	312

2999	Total liabilities	131,941	114,512
	NET POSITION:
3300	Cumulative results of operations	8,595	7,941

4999	Total liabilities and net position	140,536	122,453


Identification code 39–4993–0–4–351		2012 actual	2013 CR	2014 est.

	Position with respect to appropriations act limitation on commitments:
2131	Guaranteed loan commitments	2,453

2150	Total guaranteed loan commitments	2,453

	Cumulative balance of guaranteed loans outstanding:
2210	Outstanding, start of year	11,841	12,468	12,468
2231	Disbursements of new guaranteed loans	2,453
2251	Repayments and prepayments	–1,826

2290	Outstanding, end of year	12,468	12,468	12,468

	Memorandum:
2299	Guaranteed amount of guaranteed loans outstanding, end of year	1,599

Farmer Mac

Farmer Mac is authorized under the Farm Credit Act of 1971, as amended by the Agricultural Credit Act of 1987 (Act), to create a secondary market for agricultural real estate and rural home mortgages. The Farmer Mac title of the Act was amended by the 1990 farm bill to authorize Farmer Mac to purchase, pool, and securitize the guaranteed portions of farmer program, rural business, and community development loans guaranteed by the U.S. Department of Agriculture (USDA). The Farmer Mac title was amended in 1991 to clarify Farmer Mac's authority to issue debt obligations, provide for the establishment of minimum capital standards, establish the Office of Secondary Market Oversight at the Farm Credit Administration (FCA), and expand the Agency's rulemaking authority. The Farm Credit System Reform Act of 1996 (1996 Act) amended the Farmer Mac title to allow Farmer Mac to purchase loans directly from lenders and to issue and guarantee mortgage-backed securities without requiring that a minimum cash reserve or subordinated (first loss) interest be maintained by poolers as had been required under its original authority. The 1996 Act expanded FCA's regulatory authority to include provisions for establishing a conservatorship or receivership, if necessary, and provided for increased core capital requirements at Farmer Mac phased in over three years. Most recently, the 2008 Farm Bill, the Food, Conservation and Energy Act of 2008, amended the Farmer Mac title to authorize the financing of rural electric and telephone cooperatives.

Farmer Mac operates through several programs: "Farmer Mac I," which involves mortgage loans secured by first liens on agricultural real estate, rural utility cooperative real estate, or rural housing (qualified loans), and "Farmer Mac II," which involves the guaranteed portions of USDA-guaranteed loans. Farmer Mac operates by (1) purchasing, or committing to purchase, newly originated or existing qualified loans or guaranteed portions from lenders; (2) purchasing or guaranteeing "AgVantage'' bonds backed by qualified loans or guaranteed portions from lenders; and (3) exchanging qualified loans or guaranteed portions for guaranteed securities. Loans purchased by Farmer Mac may be aggregated into pools that back Farmer Mac guaranteed securities, which are held by Farmer Mac or sold into the capital markets. Farmer Mac is intended to attract new capital for financing qualified loans and guaranteed portions of loans; foster increased long-term, fixed-rate lending; and provide greater liquidity to agricultural and rural lenders.

Farmer Mac is governed by a 15-member Board of Directors. Ten board members are elected by stockholders, including five by the Farm Credit System and five by commercial lenders. Five are appointed by the President, subject to Senate confirmation.

Financial support and funding for Farmer Mac's operations come from several sources: sale of common and preferred stock, issuance of debt obligations, and net income. Under procedures specified in the Act, Farmer Mac may issue obligations to the U.S. Treasury in a cumulative amount not to exceed $1.5 billion to fulfill its guarantee obligations.

As of September 30, 2012, Farmer Mac's core capital exceeded statutory requirements. Additionally, Farmer Mac's regulatory capital (core capital plus the allowance for loan losses) exceeded the amount of required regulatory capital as determined by the risk-based capital rule.

Farmer Mac provides a guarantee of timely payment of principal and interest on securities backed by qualified loans or pools of qualified loans. These securities are not guaranteed by the United States and are not "Government securities."

Farmer Mac is subject to reporting requirements under securities laws, and its guaranteed mortgage-backed securities are subject to registration with the Securities and Exchange Commission under the 1933 and 1934 Securities Acts.

Farmer Mac is federally regulated by FCA, acting through its Office of Secondary Market Oversight (OSMO). FCA is responsible for the supervision of, examination of, and rulemaking for Farmer Mac.


Identification code 39–4993–0–4–351		2011 actual	2012 actual

	ASSETS:
	Non-Federal assets:
1201	Investment in securities	1,913	2,636
1206	Receivables, net	79	128
	Net value of assets related to direct loans receivable:
1401	Direct loans receivable, gross	8,534	8,798
1402	Interest receivable	80	70

1499	Net present value of assets related to direct loans	8,614	8,868
1801	Other Federal assets: Cash and other monetary assets	825	870

1999	Total assets	11,431	12,502
	LIABILITIES:
	Non-Federal liabilities:
2201	Accounts payable	195	184
2202	Interest payable	49	35
2203	Debt	10,606	11,640
2204	Liabilities for loan guarantees	34	43

2999	Total liabilities	10,884	11,902
	NET POSITION:
3300	Invested capital	547	600

4999	Total liabilities and net position	11,431	12,502

GOVERNMENT-SPONSORED ENTERPRISES

Federal National Mortgage Association

Federal Funds

Portfolio Programs

Mortgage-backed Securities

Federal Home Loan Mortgage Corporation

Federal Funds

Portfolio Programs

Mortgage-backed Securities

Federal Home Loan Bank System

Federal Funds

Federal Home Loan Banks

Farm Credit System

Federal Funds

Agricultural Credit Bank

Farm Credit Banks

Federal Agricultural Mortgage Corporation

Farmer Mac

Financing

Guarantees

Regulation