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 financing 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		2017 actual	2018 est.	2019 est.

	Cumulative balance of direct loans outstanding:
1210	Outstanding, start of year	306,537	245,133	245,133
1251	Repayments: Net repayments and prepayments	–61,404

1290	Outstanding, end of year	245,133	245,133	245,133

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 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 reformed 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 in response to the GSEs' declining capital adequacy and to support the safety and soundness of the GSEs. 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, 2017, Fannie Mae had received $116.1 billion under the PSPA (based on publicly available information as of year-end 2017, this amount is expected to increase by approximately $4.7 billion in 2018 due to an accounting-related write-down of deferred tax assets resulting from the enactment of tax reform legislation), and had made a total of $166.4 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		2016 actual	2017 actual

	ASSETS:
	Federal assets:
	Investments in US securities:
1102	Treasury securities, par	31,277	30,799
1201	Non-Federal assets: Investments in non-Federal securities, net	7,985	21,340
	Net value of assets related to direct loans receivable and acquired defaulted guaranteed loans receivable:
1601	Mortgage Loans and Mortgage Related Securities	227,157	169,245
1601	Mortgage Loans and Mortgage Related Securities - Consolidated Trusts	2,851,304	2,997,964

1604	Direct loans and interest receivable, net	3,078,461	3,167,209
1606	Acquired Property, net	5,041	3,581

1699	Value of assets related to direct loans	3,083,502	3,170,790
	Other Federal assets:
1801	Cash and other monetary assets	98,077	77,376
1901	Other assets	35,101	30,454

1999	Total assets	3,255,942	3,330,759
	LIABILITIES:
	Non-Federal liabilities:
2202	Interest payable	9,512	9,637
2203	Debt	351,568	291,289
2203	Debt - Consolidated Trusts	2,881,545	3,017,294
2207	Other	9,141	8,891

2999	Total liabilities	3,251,766	3,327,111
	NET POSITION:
3300	Senior Preferred Stock	117,149	117,149
3300	Private Equity	–112,973	–113,501
3300	Noncontrolling Interest

3999	Total net position	4,176	3,648

4999	Total liabilities and net position	3,255,942	3,330,759


Identification code 915–4987–0–4–371		2017 actual	2018 est.	2019 est.

	Cumulative balance of direct loans outstanding:
1210	Outstanding, start of year	2,861,296	2,989,374	2,989,374
1231	Disbursements: Direct loan disbursements	630,753
1251	Repayments: Repayments and prepayments	–502,675

1290	Outstanding, end of year	2,989,374	2,989,374	2,989,374

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 the Budget 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		2017 actual	2018 est.	2019 est.

	Cumulative balance of direct loans outstanding:
1210	Outstanding, start of year	308,114	266,681	250,000
1251	Repayments: Repayments and prepayments	–41,433	–16,681

1290	Outstanding, end of year	266,681	250,000	250,000

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 reformed 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 in response to the GSEs' declining capital adequacy and to support the safety and soundness of the GSEs. 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, 2017, Freddie Mac had received $71.3 billion under the PSPA (based on publicly available information as of year-end 2017, this amount is expected to increase by approximately $0.4 billion in 2018 due to an accounting-related write-down of deferred tax assets resulting from the enactment of tax reform legislation), and had made a total of $112.4 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		2016 actual	2017 actual

	ASSETS:
	Federal assets:
	Investments in US securities:
1102	Treasury securities, par	23,579	17,507
1201	Non-Federal assets: Investments in non-Federal securities, net	55,673	47,202
	Net value of assets related to direct loans receivable and acquired defaulted guaranteed loans receivable:
1601	Mortgage Loans and Mortgage Related Securities	207,898	175,675
1601	Mortgage Loans and Mortgage Related Securities - Consolidated Trusts	1,666,352	1,738,858

1604	Direct loans and interest receivable, net	1,874,250	1,914,533
1606	Acquired property, net	1,272

1699	Value of assets related to direct loans	1,875,522	1,914,533
	Other Federal assets:
1801	Cash and other monetary assets	41,758	36,838
1901	Other assets	18,730	14,576

1999	Total assets	2,015,262	2,030,656
	LIABILITIES:
	Non-Federal liabilities:
2202	Interest payable	5,890	5,990
2203	Debt	378,059	318,054
2203	Debt - Consolidated Trusts	1,621,782	1,691,524
2207	Other	6,021	9,838

2999	Total liabilities	2,011,752	2,025,406
	NET POSITION:
3300	Senior Preferred Stock	72,336	72,336
3300	Private Equity	–68,826	–67,086

3999	Total net position	3,510	5,250

4999	Total liabilities and net position	2,015,262	2,030,656


Identification code 914–4989–0–4–371		2017 actual	2018 est.	2019 est.

	Cumulative balance of direct loans outstanding:
1210	Outstanding, start of year	1,817,855	1,920,616	1,920,616
1231	Disbursements: Direct loan disbursements	416,304
1251	Repayments: Repayments and prepayments	–313,543

1290	Outstanding, end of year	1,920,616	1,920,616	1,920,616

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 the Budget, 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		2017 actual	2018 est.	2019 est.

	Cumulative balance of direct loans outstanding:
1210	Outstanding, start of year	735,671	771,613	771,613
1231	Disbursements: Direct loan disbursements	8,457,329	8,457,329	8,457,329
1251	Repayments: Repayments and prepayments	–8,417,685	–8,457,329	–8,457,329
1264	Write-offs for default: Other adjustments, net (+ or -)	–3,702

1290	Outstanding, end of year	771,613	771,613	771,613

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 11 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 7,000 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, and must meet other requirements in the Act to obtain 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 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		2016 actual	2017 actual

	ASSETS:
	Federal assets:
	Investments in US securities:
1102	Treasury securities, par	1,511	887
	Non-Federal assets:
1201	Investments in non-Federal securities, net	290,231	317,575
1206	Accounts receivable	1,201	1,515
1401	Net value of assets related to direct loans receivable: Direct loans receivable, gross	735,702	772,018
	Other Federal assets:
1801	Cash and other monetary assets	5,488	3,944
1803	Property, plant and equipment, net	218	275
1901	Other assets	2,004	1,674

1999	Total assets	1,036,355	1,097,888
	LIABILITIES:
2101	Federal liabilities: REFCORP and Affordable Housing Program	914	1,003
	Non-Federal liabilities:
2202	Interest payable	1,225	1,339
2203	Debt	968,842	1,028,135
2207	Deposit funds and other borrowing	5,748	3,881
2207	Other	8,796	8,220

2999	Total liabilities	985,525	1,042,578
	NET POSITION:
3100	Invested capital	50,830	55,310

4999	Total liabilities and net position	1,036,355	1,097,888

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		2017 actual	2018 est.	2019 est.

	Cumulative balance of direct loans outstanding:
1210	Outstanding, start of year	90,417	94,203	96,620
1231	Disbursements: Direct loan disbursements	333,452	344,455	355,821
1251	Repayments: Repayments and prepayments	–329,665	–341,997	–352,581
1263	Write-offs for default: Direct loans	–1	–41	–52

1290	Outstanding, end of year	94,203	96,620	99,808

CoBank, ACB, which is headquartered outside Denver, Colorado, provides funding to eligible cooperatives nationwide and Agricultural Credit Associations (ACAs) 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 22 ACAs 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.


	2016 act.	2017 act.	2018 est.	2019 est.


Beginning balance of net worth	7,800,245	8,653,830	8,897,129	9,360,662
Capital stock and participations issued	440,611	87,343	81,233	103,215

Capital stock and participations retired	29,108	25,890	31,753	48,432
Net income	954,624	961,547	939,902	962,298
Cash/Dividends/Patronage Distributions	–533,998	–573,129	–552,920	–543,234
Other, net	21,456	–206,572	27,071	–31,829

Ending balance of net worth	8,653,830	8,897,129	9,360,662	9,802,680


	2016 act.	2017 act.	2018 est.	2019 est.


Beginning balance of outstanding system obligations	97,279,304	107,407,980	112,319,658	113,177,699


Consolidated systemwide and other bank bonds issued	46,805,926	38,993,663	40,280,362	41,609,519
Consolidated systemwide and other bank bonds retired	37,078,905	38,175,063	39,901,063	38,405,114
Consolidated systemwide notes, net	456,912	4,130,172	500,000	500,000
Other (Net)	–55,257	–37,094	–21,258	–15,203

Ending balance of outstanding system obligations	107,407,980	112,319,658	113,177,699	116,866,901


Identification code 912–4991–0–4–351		2016 actual	2017 actual

	ASSETS:
	Non-Federal assets:
1201	Cash and investment securities	29,492	29,146
1206	Accrued interest receivable on loans	321	364
	Net value of assets related to direct loans receivable and acquired defaulted guaranteed loans receivable:
1601	Direct loans, gross	90,416	94,202
1603	Allowance for estimated uncollectible loans and interest (-)	–519	–575

1699	Value of assets related to direct loans	89,897	93,627
1803	Other Federal assets: Property, plant and equipment, net	1,039	1,199

1999	Total assets	120,749	124,336
	LIABILITIES:
2104	Federal liabilities: Resources payable to Treasury	1,498	1,353
	Non-Federal liabilities:
2201	Consolidated systemwide and other bank bonds	107,408	112,320
2201	Notes payable and other interest-bearing liabilities	2,916	1,458
2202	Accrued interest payable	273	308

2999	Total liabilities	112,095	115,439
	NET POSITION:
3300	Cumulative results of operations	8,654	8,897

4999	Total liabilities and net position	120,749	124,336


Identification code 912–4992–0–4–371		2017 actual	2018 est.	2019 est.

	Cumulative balance of direct loans outstanding:
1210	Outstanding, start of year	123,454	126,994	131,867
1231	Disbursements: Direct loan disbursements	196,240	206,791	216,736
1251	Repayments: Repayments and prepayments	–192,699	–201,907	–211,051
1263	Write-offs for default: Direct loans	–1	–11	–12

1290	Outstanding, end of year	126,994	131,867	137,540

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, 2017: 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, 2017, provided funds to one Federal Land Credit Association (FLCA) and 46 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.





	2016 act.	2017 act.	2018 est.	2019 est.




Beginning balance of net worth	9,149,023	9,480,347	9,930,452	10,081,735
Capital stock and participations issued	226,361	246,055	248,648	249,028

Capital stock and participations retired	113,897	50,415	8,417	11,566
Surplus Retired	–4,633	–5,866	0	0
Net income	1,026,457	1,084,095	1,015,239	1,085,944
Cash/Dividends/Patronage Distributions	–695,451	–847,192	–986,239	–1,055,119
Other, net	–116,779	11,696	–117,948	–143,498

Ending balance of net worth	9,480,347	9,930,452	10,081,735	10,206,524





	2016 act.	2017 act.	2018 est.	2019 est.




Beginning balance of outstanding system obligations	133,822,885	144,502,285	145,600,456	151,018,538


Consolidated systemwide and other bank bonds issued	242,160,591	226,875,182	237,904,012	239,397,945
Consolidated systemwide and other bank bonds retired	236,530,182	220,736,779	233,344,751	232,520,954
Consolidated systemwide notes, net	5,068,965	–5,052,998	858,821	232,001
Other (Net)	–19,974	12,766	0	0

Ending balance of outstanding system obligations	144,502,285	145,600,456	151,018,538	158,127,530


Identification code 912–4992–0–4–371		2016 actual	2017 actual

	ASSETS:
	Non-Federal assets:
1201	Cash and investment securities	31,403	29,276
1206	Accrued Interest Receivable	554	648
	Net value of assets related to direct loans receivable and acquired defaulted guaranteed loans receivable:
1601	Direct loans, gross	123,453	126,994
1603	Allowance for estimated uncollectible loans and interest (-)	–45	–48

1699	Value of assets related to direct loans	123,408	126,946
1803	Other Federal assets: Property, plant and equipment, net	629	577

1999	Total assets	155,994	157,447
	LIABILITIES:
2104	Federal liabilities: Resources payable to Treasury	506	412
	Non-Federal liabilities:
2201	Consolidated systemwide and other bank bonds	144,502	145,600
2201	Notes payable and other interest-bearing liabilities	1,166	1,063
2202	Accrued interest payable	340	442

2999	Total liabilities	146,514	147,517
	NET POSITION:
3300	Cumulative results of operations	9,480	9,930

4999	Total liabilities and net position	155,994	157,447


Identification code 912–4993–0–4–351		2017 actual	2018 est.	2019 est.

	Cumulative balance of guaranteed loans outstanding:
2210	Outstanding, start of year	17,248	18,644	18,644
2231	Disbursements of new guaranteed loans	4,668
2251	Repayments and prepayments	–3,272

2290	Outstanding, end of year	18,644	18,644	18,644

	Memorandum:
2299	Guaranteed amount of guaranteed loans outstanding, end of year	2,299

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 telecommunications 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, 2017, 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		2016 actual	2017 actual

	ASSETS:
	Non-Federal assets:
1201	Investment in securities	3,001	2,235
1206	Receivables, net	165	134
	Net value of assets related to direct loans receivable:
1401	Direct loans receivable, gross	12,434	14,844
1402	Interest receivable	87	110

1499	Net present value of assets related to direct loans	12,521	14,954
1801	Other Federal assets: Cash and other monetary assets	314	367

1999	Total assets	16,001	17,690
	LIABILITIES:
	Non-Federal liabilities:
2201	Accounts payable	159	51
2202	Interest payable	40	62
2203	Debt	15,161	16,846
2204	Liabilities for loan guarantees	40	37

2999	Total liabilities	15,400	16,996
	NET POSITION:
3300	Invested capital	601	694

4999	Total liabilities and net position	16,001	17,690

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