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 915–4986–0–4–371		2014 actual	2015 est.	2016 est.

	Cumulative balance of direct loans outstanding:
1210	Outstanding, start of year	516,259	438,100	399,181
1251	Repayments: Net repayments and prepayments	–78,159	–38,919	–59,877

1290	Outstanding, end of year	438,100	399,181	339,304

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, shareholder-owned, private 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 placed 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, 2014, Fannie Mae had received $116.1 billion under the PSPA and made a total of $134.5 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 915–4986–0–4–371		2013 actual	2014 actual

	ASSETS:
	Federal assets:
	Investments in US securities:
1102	Treasury securities, par	16,396	17,757
1201	Non-Federal assets: Investments in other securities, net	56,764	29,450
	Net value of assets related to direct loans receivable and acquired defaulted guaranteed loans receivable:
1601	Mortgage Loans and Mortgage Related Securities	310,096	287,584
1601	Mortgage Loans and Mortgage Related Securities - Consolidated Trusts	2,744,084	2,767,805

1604	Direct loans and interest receivable, net	3,054,180	3,055,389
1606	Acquired Property, net	11,380	11,339

1699	Value of assets related to direct loans	3,065,560	3,066,728
	Other Federal assets:
1801	Cash and other monetary assets	94,246	73,624
1901	Other assets	48,256	42,757

1999	Total assets	3,281,222	3,230,316
	LIABILITIES:
	Non-Federal liabilities:
2202	Interest payable	10,769	10,492
2203	Debt	565,110	474,952
2203	Debt - Consolidated Trusts	2,675,011	2,726,528
2207	Other	18,715	11,945

2999	Total liabilities	3,269,605	3,223,917
	NET POSITION:
3300	Senior Preferred Stock	117,149	117,149
3300	Private Equity	–105,581	–110,800
3300	Noncontrolling Interest	49	50

3999	Total net position	11,617	6,399

4999	Total liabilities and net position	3,281,222	3,230,316


Identification code 915–4987–0–4–371		2014 actual	2015 est.	2016 est.

	Cumulative balance of direct loans outstanding:
1210	Outstanding, start of year	2,752,813	2,768,291	2,768,291
1231	Disbursements: Direct loan disbursements	412,282
1251	Repayments: Repayments and prepayments	–396,804

1290	Outstanding, end of year	2,768,291	2,768,291	2,768,291

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 913–4988–0–4–371		2014 actual	2015 est.	2016 est.

	Cumulative balance of direct loans outstanding:
1210	Outstanding, start of year	497,814	413,610	399,181
1251	Repayments: Repayments and prepayments	–84,204	–14,429	–59,877

1290	Outstanding, end of year	413,610	399,181	339,304

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 placed 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 Freddie Mac 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, 2014, Freddie Mac had received $71.3 billion under the PSPA and made a total of $91.0 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 913–4988–0–4–371		2013 actual	2014 actual

	ASSETS:
	Federal assets:
	Investments in US securities:
1102	Treasury securities, par	31,641	9,159
1201	Non-Federal assets: Investments in other securities, net	41,023	29,956
	Net value of assets related to direct loans receivable and acquired defaulted guaranteed loans receivable:
1601	Mortgage Loans and Mortgage Related Securities	324,228	275,490
1601	Mortgage Loans and Mortgage Related Securities - Consolidated Trusts	1,526,070	1,549,533

1604	Direct loans and interest receivable, net	1,850,298	1,825,023
1606	Acquired property, net	4,368	2,911

1699	Value of assets related to direct loans	1,854,666	1,827,934
	Other Federal assets:
1801	Cash and other monetary assets	30,525	37,254
1901	Other assets	23,930	18,481

1999	Total assets	1,981,785	1,922,784
	LIABILITIES:
	Non-Federal liabilities:
2202	Interest payable	6,504	6,217
2203	Debt	515,668	435,706
2203	Debt - Consolidated Trusts	1,419,909	1,467,845
2207	Other	6,268	7,830

2999	Total liabilities	1,948,349	1,917,598
	NET POSITION:
3300	Senior Preferred Stock	72,336	72,336
3300	Private Equity	–38,900	–67,150

3999	Total net position	33,436	5,186

4999	Total liabilities and net position	1,981,785	1,922,784


Identification code 914–4989–0–4–371		2014 actual	2015 est.	2016 est.

	Cumulative balance of direct loans outstanding:
1210	Outstanding, start of year	1,612,858	1,646,431	1,646,431
1231	Disbursements: Direct loan disbursements	273,376
1251	Repayments: Repayments and prepayments	–239,803

1290	Outstanding, end of year	1,646,431	1,646,431	1,646,431

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 913–4990–0–4–371		2014 actual	2015 est.	2016 est.

	Cumulative balance of direct loans outstanding:
1210	Outstanding, start of year	510,383	587,969	587,969
1231	Disbursements: Direct loan disbursements	3,501,706	3,501,706	3,501,706
1251	Repayments: Repayments and prepayments	–3,421,480	–3,501,706	–3,501,706
1264	Write-offs for default: Other adjustments, net (+ or -)	–2,640

1290	Outstanding, end of year	587,969	587,969	587,969

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 7,400 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 (an application to merge the FHLBanks of Des Moines and Seattle is pending) 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 FHLBanks fulfilled this obligation on August 5, 2011. For additional discussion and analyses of the FHLBanks, please see the Analytical Perspectives volume of the Budget.


Identification code 913–4990–0–4–371		2013 actual	2014 actual

	ASSETS:
	Federal assets:
	Investments in US securities:
1102	Treasury securities, par	1,038	1,229
	Non-Federal assets:
1201	Investments in other securities, net	241,619	238,354
1206	Accounts receivable	1,144	1,094
1401	Net value of assets related to direct loans receivable: Direct loans receivable, gross	510,280	587,913
	Other Federal assets:
1801	Cash and other monetary assets	34,093	53,488
1803	Property, plant and equipment, net	220	223
1901	Other assets	1,053	1,061

1999	Total assets	789,447	883,362
	LIABILITIES:
2101	Federal liabilities: REFCORP and Affordable Housing Program	772	793
	Non-Federal liabilities:
2202	Interest payable	1,625	1,374
2203	Debt	722,162	818,042
2207	Deposit funds and other borrowing	10,466	9,322
2207	Other	11,278	7,169

2999	Total liabilities	746,303	836,700
	NET POSITION:
3100	Invested capital	43,144	46,662

4999	Total liabilities and net position	789,447	883,362

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 on 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 912–4991–0–4–351		2014 actual	2015 est.	2016 est.

	Cumulative balance of direct loans outstanding:
1210	Outstanding, start of year	70,377	75,638	79,808
1231	Disbursements: Direct loan disbursements	328,972	343,775	359,245
1251	Repayments: Repayments and prepayments	–323,720	–339,587	–356,017
	Write-offs for default:
1263	Direct loans		–18	–25
1264	Other adjustments, net (+ or -)	9

1290	Outstanding, end of year	75,638	79,808	83,011

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 25 ACAs and one FLCA 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.


	2013 act.	2014 act.	2015 est.	2016 est.


Beginning balance of net worth	6,361,670	6,609,288	7,061,398	7,605,859
Capital stock and participations issued	627,023	26,635	283,316	33,264

Capital stock and participations retired	594,864	33,439	170,250	30,500
Net income	782,279	916,449	897,199	897,638
Cash/Dividends/Patronage Distributions	–427,788	–428,852	–444,204	–470,649
Other, net	–139,032	–28,683	–21,600	2,255

Ending balance of net worth	6,609,288	7,061,398	7,605,859	8,037,867


	2013 act.	2014 act.	2015 est.	2016 est.


Beginning balance of outstanding system obligations	79,079,791	82,111,600	88,513,292	90,526,086


Consolidated systemwide and other bank bonds issued	24,071,306	26,128,369	27,304,146	28,532,833
Consolidated systemwide and other bank bonds retired	24,497,790	21,309,889	25,722,852	23,495,326
Consolidated systemwide notes, net	3,624,102	1,674,497	500,000	500,000
Other (Net)	–165,809	–91,285	–68,500	–50,250

Ending balance of outstanding system obligations	82,111,600	88,513,292	90,526,086	96,013,343


Identification code 912–4991–0–4–351		2013 actual	2014 actual

	ASSETS:
	Non-Federal assets:
1201	Cash and investment securities	22,727	24,965
1206	Accrued interest receivable on loans	367	357
	Net value of assets related to direct loans receivable and acquired defaulted guaranteed loans receivable:
1601	Direct loans, gross	70,377	75,638
1603	Allowance for estimated uncollectible loans and interest (-)	–450	–407

1699	Value of assets related to direct loans	69,927	75,231
1803	Other Federal assets: Property, plant and equipment, net	1,106	1,071

1999	Total assets	94,127	101,624
	LIABILITIES:
2104	Federal liabilities: Resources payable	1,068	1,316
	Non-Federal liabilities:
2201	Consolidated systemwide and other bank bonds	82,111	88,513
2201	Notes payable and other interest-bearing liabilities	4,033	4,461
2202	Accrued interest payable	306	273

2999	Total liabilities	87,518	94,563
	NET POSITION:
3300	Cumulative results of operations	6,609	7,061

4999	Total liabilities and net position	94,127	101,624


Identification code 912–4992–0–4–371		2014 actual	2015 est.	2016 est.

	Cumulative balance of direct loans outstanding:
1210	Outstanding, start of year	103,071	108,205	112,012
1231	Disbursements: Direct loan disbursements	181,373	192,517	201,753
1251	Repayments: Repayments and prepayments	–176,239	–188,693	–198,495
1263	Write-offs for default: Direct loans		–17	–17

1290	Outstanding, end of year	108,205	112,012	115,253

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, 2014: 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, 2014, provided funds to one Federal Land Credit Association (FLCA) and 50 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.





	2013 act.	2014 act.	2015 est.	2016 est.




Beginning balance of net worth	7,940,682	8,615,024	8,828,842	9,084,655
Capital stock and participations issued	462,635	373,384	171,353	172,485

Capital stock and participations retired	354,071	559,397	131,243	136,225
Surplus Retired	–6	–77	–4	0
Net income	1,195,769	1,140,319	994,137	1,023,928
Cash/Dividends/Patronage Distributions	–540,706	–777,495	–805,232	–586,355
Other, net	–89,291	36,930	26,794	27,467

Ending balance of net worth	8,615,024	8,828,842	9,084,655	9,585,955





	2013 act.	2014 act.	2015 est.	2016 est.




Beginning balance of outstanding system obligations	112,291,707	118,125,324	125,494,765	131,621,448


Consolidated systemwide and other bank bonds issued	283,823,221	268,562,125	269,657,053	274,456,385
Consolidated systemwide and other bank bonds retired	278,179,850	263,321,191	264,505,272	270,282,042
Consolidated systemwide notes, net	190,246	2,128,507	974,902	965,015
Other (Net)	0	0	0	0

Ending balance of outstanding system obligations	118,125,324	125,494,765	131,621,448	136,760,806


Identification code 912–4992–0–4–371		2013 actual	2014 actual

	ASSETS:
	Non-Federal assets:
1201	Cash and investment securities	24,994	27,610
1206	Accrued Interest Receivable	486	475
	Net value of assets related to direct loans receivable and acquired defaulted guaranteed loans receivable:
1601	Direct loans, gross	103,071	108,204
1603	Allowance for estimated uncollectible loans and interest (-)	–53	–38

1699	Value of assets related to direct loans	103,018	108,166
1803	Other Federal assets: Property, plant and equipment, net	569	534

1999	Total assets	129,067	136,785
	LIABILITIES:
2104	Federal liabilities: Resources payable	315	323
	Non-Federal liabilities:
2201	Consolidated systemwide and other bank bonds	118,125	125,495
2201	Notes payable and other interest-bearing liabilities	1,720	1,835
2202	Accrued interest payable	292	303

2999	Total liabilities	120,452	127,956
	NET POSITION:
3300	Cumulative results of operations	8,615	8,829

4999	Total liabilities and net position	129,067	136,785


Identification code 912–4993–0–4–351		2014 actual	2015 est.	2016 est.

	Cumulative balance of guaranteed loans outstanding:
2210	Outstanding, start of year	13,786	14,005	14,005
2231	Disbursements of new guaranteed loans	2,666
2251	Repayments and prepayments	–2,447

2290	Outstanding, end of year	14,005	14,005	14,005

	Memorandum:
2299	Guaranteed amount of guaranteed loans outstanding, end of year	1,760

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, 2014, 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 912–4993–0–4–351		2013 actual	2014 actual

	ASSETS:
	Non-Federal assets:
1201	Investment in securities	2,503	3,616
1206	Receivables, net	92	116
	Net value of assets related to direct loans receivable:
1401	Direct loans receivable, gross	9,767	10,100
1402	Interest receivable	71	66

1499	Net present value of assets related to direct loans	9,838	10,166
1801	Other Federal assets: Cash and other monetary assets	652	628

1999	Total assets	13,085	14,526
	LIABILITIES:
	Non-Federal liabilities:
2201	Accounts payable	159	88
2202	Interest payable	37	35
2203	Debt	12,237	13,577
2204	Liabilities for loan guarantees	47	43

2999	Total liabilities	12,480	13,743
	NET POSITION:
3300	Invested capital	605	783

4999	Total liabilities and net position	13,085	14,526

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