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		2013 actual	2014 est.	2015 est.

	Cumulative balance of direct loans outstanding:
1210	Outstanding, start of year	654,269	516,259	469,625
1251	Repayments: Net repayments and prepayments	–138,010	–46,634	–70,444

1290	Outstanding, end of year	516,259	469,625	399,181

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.

The Housing and Economic Recovery Act (HERA) of 2008 strengthened housing GSE regulation by creating the Federal Housing Finance Agency (FHFA), a new independent regulator, and providing temporary authority for the U.S. Department of the Treasury to purchase obligations of the housing GSEs. On September 6, 2008, FHFA put Fannie Mae under Federal conservatorship to avoid a possible collapse of the housing finance market and further risks to the broader financial market. On the following day, 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. Based on the financial results reported by Fannie Mae as of December 31, 2012 and under the terms of the PSPA, the cumulative funding commitment cap for Fannie Mae was set at $233.7 billion. As of December 31, 2013, Fannie Mae had received $116.1 billion under the PSPA and made a total of $113.9 billion in dividend payments to Treasury on the senior preferred stock. 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		2012 actual	2013 actual

	ASSETS:
	Federal assets: Investments in US securities:
1102	Treasury securities, par	19,897	16,396
1201	Non-Federal assets: Investments in other securities, net	45,500	56,764
	Net value of assets related to direct loans receivable and acquired defaulted guaranteed loans receivable:
1601	Mortgage Loans and Mortgage Related Securities	389,519	310,096
1601	Mortgage Loans and Mortgage Related Securities - Consolidated Trusts	2,642,354	2,744,084

1604	Direct loans and interest receivable, net	3,031,873	3,054,180
1606	Acquired Property, net	10,278	11,380

1699	Value of assets related to direct loans	3,042,151	3,065,560
	Other Federal assets:
1801	Cash and other monetary assets	118,702	94,246
1901	Other assets		48,256

1999	Total assets	3,226,250	3,281,222
	LIABILITIES:
	Non-Federal liabilities:
2202	Interest payable	11,732	10,769
2203	Debt	652,971	565,110
2203	Debt - Consolidated Trusts	2,543,739	2,675,011
2207	Other	15,396	18,715

2999	Total liabilities	3,223,838	3,269,605
	NET POSITION:
3300	Senior Preferred Stock	117,149	117,149
3300	Private Equity	–114,790	–105,581
3300	Noncontrolling Interest	53	49

3999	Total net position	2,412	11,617

4999	Total liabilities and net position	3,226,250	3,281,222


Identification code 39–4987–0–4–371		2013 actual	2014 est.	2015 est.

	Cumulative balance of direct loans outstanding:
1210	Outstanding, start of year	2,694,799	2,752,813	2,752,813
1231	Disbursements: Direct loan disbursements	876,999
1251	Repayments: Repayments and prepayments	–818,985

1290	Outstanding, end of year	2,752,813	2,752,813	2,752,813

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		2013 actual	2014 est.	2015 est.

	Cumulative balance of direct loans outstanding:
1210	Outstanding, start of year	567,966	497,814	469,625
1251	Repayments: Repayments and prepayments	–70,152	–28,189	–70,444

1290	Outstanding, end of year	497,814	469,625	399,181

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.

The Housing and Economic Recovery Act (HERA) of 2008 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. On September 6, 2008, FHFA put Freddie Mac under Federal conservatorship to avoid a possible collapse of the housing finance market and further risks to the broader financial market. On the following day, 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. Based on the financial results reported by Fannie Mae as of December 31, 2012 and under the terms of the PSPA, the cumulative funding commitment cap for Freddie Mac was set at $211.8 billion. As of December 31, 2012, Freddie Mac had received $71.3 billion under the PSPA and made a total of $71.3 billion in dividend payments to Treasury on the senior preferred stock. 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		2012 actual	2013 actual

	ASSETS:
	Federal assets: Investments in US securities:
1102	Treasury securities, par	21,554	31,641
1201	Non-Federal assets: Investments in other securities, net	47,660	41,023
	Net value of assets related to direct loans receivable and acquired defaulted guaranteed loans receivable:
1601	Mortgage Loans and Mortgage Related Securities	399,450	324,228
1601	Mortgage Loans and Mortgage Related Securities - Consolidated Trusts	1,505,576	1,526,070

1604	Direct loans and interest receivable, net	1,905,026	1,850,298
1606	Acquired property, net	4,502	4,368

1699	Value of assets related to direct loans	1,909,528	1,854,666
	Other Federal assets:
1801	Cash and other monetary assets	36,210	30,525
1901	Other assets	1,551	23,930

1999	Total assets	2,016,503	1,981,785
	LIABILITIES:
	Non-Federal liabilities:
2202	Interest payable	7,528	6,504
2203	Debt	565,036	515,668
2203	Debt - Consolidated Trusts	1,432,632	1,419,909
2207	Other	6,400	6,268

2999	Total liabilities	2,011,596	1,948,349
	NET POSITION:
3300	Senior Preferred Stock	72,336	72,336
3300	Private Equity	–67,429	–38,900

3999	Total net position	4,907	33,436

4999	Total liabilities and net position	2,016,503	1,981,785


Identification code 39–4989–0–4–371		2013 actual	2014 est.	2015 est.

	Cumulative balance of direct loans outstanding:
1210	Outstanding, start of year	1,591,666	1,612,858	1,612,858
1231	Disbursements: Direct loan disbursements	523,548
1251	Repayments: Repayments and prepayments	–502,356

1290	Outstanding, end of year	1,612,858	1,612,858	1,612,858

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		2013 actual	2014 est.	2015 est.

	Position with respect to appropriations act limitation on obligations:
1131	Direct loan obligations	3,257,971	2,654,585	2,654,585

1150	Total direct loan obligations	3,257,971	2,654,585	2,654,585

	Cumulative balance of direct loans outstanding:
1210	Outstanding, start of year	463,076	510,383	510,383
1231	Disbursements: Direct loan disbursements	3,257,971	3,257,971	3,257,971
1251	Repayments: Repayments and prepayments	–3,204,149	–3,257,971	–3,257,971
1264	Write-offs for default: Other adjustments, net (+ or -)	–6,515

1290	Outstanding, end of year	510,383	510,383	510,383

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 7,500 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		2012 actual	2013 actual

	ASSETS:
	Federal assets: Investments in US securities:
1102	Treasury securities, par	2,169	1,038
	Non-Federal assets:
1201	Investments in other securities, net	275,025	208,564
1206	Accounts receivable	1,454	1,144
1401	Net value of assets related to direct loans receivable: Direct loans receivable, gross	462,939	510,383
	Other Federal assets:
1801	Cash and other monetary assets	4,040	34,093
1803	Property, plant and equipment, net	202	220
1901	Other assets	3,153	34,006

1999	Total assets	748,982	789,448
	LIABILITIES:
2101	Federal liabilities: REFCORP and Affordable Housing Program	743	772
	Non-Federal liabilities:
2202	Interest payable	1,864	1,625
2203	Debt	679,710	722,162
2207	Deposit funds and other borrowing	12,579	11,278
2207	Other	12,566	10,466

2999	Total liabilities	707,462	746,303
	NET POSITION:
3100	Invested capital	41,520	43,145

4999	Total liabilities and net position	748,982	789,448

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		2013 actual	2014 est.	2015 est.

	Position with respect to appropriations act limitation on obligations:
1131	Direct loan obligations	248,974	256,392	265,366

1150	Total direct loan obligations	248,974	256,392	265,366

	Cumulative balance of direct loans outstanding:
1210	Outstanding, start of year	69,945	70,377	74,388
1231	Disbursements: Direct loan disbursements	248,925	256,393	265,366
1251	Repayments: Repayments and prepayments	–248,498	–252,345	–263,942
	Write-offs for default:
1263	Direct loans		–37	–50
1264	Other adjustments, net (+ or -)	5

1290	Outstanding, end of year	70,377	74,388	75,762

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.





	2012 act.	2013 act.	2014 est.	2015 est.

Beginning balance of net worth	4,855,255	6,361,670	6,609,288	6,970,114
Capital stock and participations issued	5,326	627,023	3,066	200,604

Capital stock and participations retired	34,124	594,864	32,900	168,950
Net income	844,422	782,279	784,863	792,172
Cash/Dividends/Patronage Distributions	–358,491	–19,738	–407,200	–420,108
Other, net	1,049,282	–547,082	12,997	–17,322

Ending balance of net worth	6,361,670	6,609,288	6,970,114	7,356,510





	2012 act.	2013 act.	2014 est.	2015 est.

Beginning balance of outstanding system obligations	52,767,035	79,079,791	82,111,600	84,871,162


Consolidated systemwide and other bank bonds issued	29,144,296	24,071,306	24,793,445	25,661,216
Consolidated systemwide and other bank bonds retired	26,020,538	24,497,790	22,435,883	23,149,652
Consolidated systemwide notes, net	–865,056	3,624,102	500,000	500,000
Other (Net)	24,054,054	–165,809	–98,000	–68,500

Ending balance of outstanding system obligations	79,079,791	82,111,600	84,871,162	87,814,226


Identification code 39–4991–0–4–351		2012 actual	2013 actual

	ASSETS:
	Non-Federal assets:
1201	Cash and investment securities	18,835	22,727
1206	Accrued interest receivable on loans	395	367
	Net value of assets related to direct loans receivable and acquired defaulted guaranteed loans receivable:
1601	Direct loans, gross	69,945	70,377
1603	Allowance for estimated uncollectible loans and interest (-)	–375	–450

1699	Value of assets related to direct loans	69,570	69,927
1803	Other Federal assets: Property, plant and equipment, net	1,456	1,106

1999	Total assets	90,256	94,127
	LIABILITIES:
2104	Federal liabilities: Resources payable	1,133	1,068
	Non-Federal liabilities:
2201	Consolidated systemwide and other bank bonds	79,080	82,111
2201	Notes payable and other interest-bearing liabilities	3,340	4,033
2202	Accrued interest payable	341	306

2999	Total liabilities	83,894	87,518
	NET POSITION:
3300	Cumulative results of operations	6,362	6,609

4999	Total liabilities and net position	90,256	94,127


Identification code 39–4992–0–4–371		2013 actual	2014 est.	2015 est.

	Position with respect to appropriations act limitation on obligations:
1131	Direct loan obligations	183,518	192,750	201,791

1150	Total direct loan obligations	183,518	192,750	201,791

	Cumulative balance of direct loans outstanding:
1210	Outstanding, start of year	97,404	103,071	108,005
1231	Disbursements: Direct loan disbursements	183,511	192,087	202,992
1251	Repayments: Repayments and prepayments	–177,821	–187,122	–195,588
1263	Write-offs for default: Direct loans	–23	–31	–26

1290	Outstanding, end of year	103,071	108,005	115,383

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, 2013: 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, 2013, 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.





	2012 act.	2013 act.	2014 est.	2015 est.




Beginning balance of net worth	8,594,783	7,940,682	8,615,024	8,860,009
Capital stock and participations issued	173,947	462,635	180,104	232,505

Capital stock and participations retired	263,410	354,071	298,982	115,407
Surplus Retired	–307	–6	0	0
Net income	1,128,466	1,195,769	1,018,146	1,010,835
Cash/Dividends/Patronage Distributions	–557,716	–540,706	–596,649	–527,610
Other, net	–1,250,551	–89,291	–57,634	7,964

Ending balance of net worth	7,940,682	8,615,024	8,860,009	9,468,296





	2012 act.	2013 act.	2014 est.	2015 est.




Beginning balance of outstanding system obligations	129,243,811	112,291,707	118,125,324	125,304,036


Consolidated systemwide and other bank bonds issued	604,654,487	283,823,221	280,270,571	286,994,292
Consolidated systemwide and other bank bonds retired	596,798,388	278,179,850	273,275,604	279,229,315
Consolidated systemwide notes, net	–1,849,535	190,246	183,745	913,137
Other (Net)	–22,958,668	0	0	0

Ending balance of outstanding system obligations	112,291,707	118,125,324	125,304,036	133,982,150


Identification code 39–4992–0–4–371		2012 actual	2013 actual

	ASSETS:
	Non-Federal assets:
1201	Cash and investment securities	23,990	24,994
1206	Accrued Interest Receivable	537	486
	Net value of assets related to direct loans receivable and acquired defaulted guaranteed loans receivable:
1601	Direct loans, gross	97,404	103,071
1603	Allowance for estimated uncollectible loans and interest (-)	–72	–53

1699	Value of assets related to direct loans	97,332	103,018
1803	Other Federal assets: Property, plant and equipment, net	594	569

1999	Total assets	122,453	129,067
	LIABILITIES:
2104	Federal liabilities: Resources payable	321	315
	Non-Federal liabilities:
2201	Consolidated systemwide and other bank bonds	112,292	118,125
2201	Notes payable and other interest-bearing liabilities	1,587	1,720
2202	Accrued interest payable	312	292

2999	Total liabilities	114,512	120,452
	NET POSITION:
3300	Cumulative results of operations	7,941	8,615

4999	Total liabilities and net position	122,453	129,067


Identification code 39–4993–0–4–351		2013 actual	2014 est.	2015 est.

	Position with respect to appropriations act limitation on commitments:
2131	Guaranteed loan commitments	3,224

2150	Total guaranteed loan commitments	3,224

	Cumulative balance of guaranteed loans outstanding:
2210	Outstanding, start of year	12,468	13,786	13,786
2231	Disbursements of new guaranteed loans	3,224
2251	Repayments and prepayments	–1,906

2290	Outstanding, end of year	13,786	13,786	13,786

	Memorandum:
2299	Guaranteed amount of guaranteed loans outstanding, end of year	1,677

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: the "Farm & Ranch" program involves mortgage loans secured by first liens on agricultural real estate, or rural housing (qualified loans); the "USDA guarantees" program involves the guaranteed portions of certain USDA-guaranteed loans; and the "Rural Utilities" program involves rural electric and telephone 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; 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 governed by a 15-member Board of Directors. Ten board members are elected by stockholders, including five by stockholders that are Farm Credit System (FCS) institutions and five by stockholders that are non-FCS financial services firms. 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 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 Farmer Mac's guarantee obligations.

As of September 30, 2013, 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		2012 actual	2013 actual

	ASSETS:
	Non-Federal assets:
1201	Investment in securities	2,636	2,503
1206	Receivables, net	128	92
	Net value of assets related to direct loans receivable:
1401	Direct loans receivable, gross	8,798	9,767
1402	Interest receivable	70	71

1499	Net present value of assets related to direct loans	8,868	9,838
1801	Other Federal assets: Cash and other monetary assets	870	652

1999	Total assets	12,502	13,085
	LIABILITIES:
	Non-Federal liabilities:
2201	Accounts payable	184	159
2202	Interest payable	35	37
2203	Debt	11,640	12,237
2204	Liabilities for loan guarantees	43	47

2999	Total liabilities	11,902	12,480
	NET POSITION:
3300	Invested capital	600	605

4999	Total liabilities and net position	12,502	13,085

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