[Appendix]
[Other Materials]
[Government-Sponsored Enterprises]
[From the U.S. Government Publishing Office, www.gpo.gov]
<h1>GOVERNMENT-SPONSORED ENTERPRISES</h1>
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, 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
Portfolio Programs
Status of Direct Loans (in millions of dollars)
Identification code 915–4986–0–4–371
2018 actual
2019 est.
2020 est.
Cumulative balance of direct loans outstanding:
1210
Outstanding, start of year
245,133
199,114
199,114
1251
Repayments: Net repayments and prepayments
–46,019
1290
Outstanding, end of year
199,114
199,114
199,114
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 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,
2018, Fannie Mae had received $119.8 billion under the PSPA, and had made a total of $175.8 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.
Balance Sheet (in millions of dollars)
Identification code 915–4986–0–4–371
2017 actual
2018 actual
ASSETS:
Federal assets:
Investments in U.S. securities:
1102
Treasury securities, par
30,799
37,328
1201
Non-Federal assets: Investments in non-Federal securities, net
23,740
26,692
Net value of assets related to direct loans receivable and acquired defaulted guaranteed loans receivable:
1601
Mortgage Loans and Mortgage Related Securities
166,845
131,599
1601
Mortgage Loans and Mortgage Related Securities - Consolidated Trusts
2,997,964
3,111,551
1606
Acquired Property, net
3,581
2,722
1699
Value of assets related to direct loans
3,168,390
3,245,872
Other Federal assets:
1801
Cash and other monetary assets
77,376
76,845
1901
Other assets
30,454
14,368
1999
Total assets
3,330,759
3,401,105
LIABILITIES:
Non-Federal liabilities:
2202
Interest payable
9,637
10,105
2203
Debt
291,289
246,682
2203
Debt - Consolidated Trusts
3,017,294
3,127,688
2207
Other
8,891
9,655
2999
Total liabilities
3,327,111
3,394,130
NET POSITION:
3300
Senior Preferred Stock
117,149
120,836
3300
Private Equity
–113,501
–113,861
3300
Noncontrolling Interest
3999
Total net position
3,648
6,975
4999
Total liabilities and net position
3,330,759
3,401,105
Mortgage-backed Securities
Status of Direct Loans (in millions of dollars)
Identification code 915–4987–0–4–371
2018 actual
2019 est.
2020 est.
Cumulative balance of direct loans outstanding:
1210
Outstanding, start of year
2,989,374
3,097,227
3,097,227
1231
Disbursements: Direct loan disbursements
552,050
1251
Repayments: Repayments and prepayments
–444,197
1290
Outstanding, end of year
3,097,227
3,097,227
3,097,227
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
Portfolio Programs
Status of Direct Loans (in millions of dollars)
Identification code 913–4988–0–4–371
2018 actual
2019 est.
2020 est.
Cumulative balance of direct loans outstanding:
1210
Outstanding, start of year
266,681
227,804
227,804
1251
Repayments: Repayments and prepayments
–38,877
1290
Outstanding, end of year
227,804
227,804
227,804
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 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,
2018, Freddie Mac had received $71.6 billion under the PSPA, and had made a total of $116.5 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 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.
Balance Sheet (in millions of dollars)
Identification code 913–4988–0–4–371
2017 actual
2018 actual
ASSETS:
Federal assets:
Investments in U.S. securities:
1102
Treasury securities, par
17,507
25,479
1201
Non-Federal assets: Investments in non-Federal securities, net
47,202
48,540
Net value of assets related to direct loans receivable and acquired defaulted guaranteed loans receivable:
1601
Mortgage Loans and Mortgage Related Securities
175,675
138,103
1601
Mortgage Loans and Mortgage Related Securities - Consolidated Trusts
1,738,858
1,814,776
1606
Acquired property, net
1699
Value of assets related to direct loans
1,914,533
1,952,879
Other Federal assets:
1801
Cash and other monetary assets
36,838
28,683
1901
Other assets
14,576
7,876
1999
Total assets
2,030,656
2,063,457
LIABILITIES:
Non-Federal liabilities:
2202
Interest payable
5,990
6,418
2203
Debt
318,054
276,945
2203
Debt - Consolidated Trusts
1,691,524
1,765,045
2207
Other
9,838
9,490
2999
Total liabilities
2,025,406
2,057,898
NET POSITION:
3300
Senior Preferred Stock
72,336
72,648
3300
Private Equity
–67,086
–67,089
3999
Total net position
5,250
5,559
4999
Total liabilities and net position
2,030,656
2,063,457
Mortgage-backed Securities
Status of Direct Loans (in millions of dollars)
Identification code 914–4989–0–4–371
2018 actual
2019 est.
2020 est.
Cumulative balance of direct loans outstanding:
1210
Outstanding, start of year
1,920,616
2,045,101
2,045,101
1231
Disbursements: Direct loan disbursements
407,109
1251
Repayments: Repayments and prepayments
–282,624
1290
Outstanding, end of year
2,045,101
2,045,101
2,045,101
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
Federal Home Loan Banks
Status of Direct Loans (in millions of dollars)
Identification code 913–4990–0–4–371
2018 actual
2019 est.
2020 est.
Cumulative balance of direct loans outstanding:
1210
Outstanding, start of year
771,613
766,096
766,096
1231
Disbursements: Direct loan disbursements
11,072,413
11,072,413
11,072,413
1251
Repayments: Repayments and prepayments
–11,074,915
–11,072,413
–11,072,413
1264
Other adjustments, net (+ or -)
–3,015
1290
Outstanding, end of year
766,096
766,096
766,096
The Federal Home Loan Bank System is a Government-sponsored enterprise (GSE) in the housing finance market. The Federal Home
Loan Banks (FHLBanks) 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 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 nearly 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. 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, including 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.
Balance Sheet (in millions of dollars)
Identification code 913–4990–0–4–371
2017 actual
2018 actual
ASSETS:
Federal assets:
Investments in U.S. securities:
1102
Treasury securities, par
887
8,623
Non-Federal assets:
1201
Investments in non-Federal securities, net
317,575
309,768
1206
Accounts receivable
1,515
2,009
1401
Net value of assets related to direct loans receivable: Direct loans receivable, gross
772,018
766,197
Other Federal assets:
1801
Cash and other monetary assets
3,944
772
1803
Property, plant and equipment, net
275
308
1901
Other assets
1,674
1,700
1999
Total assets
1,097,888
1,089,377
LIABILITIES:
2101
Federal liabilities: REFCORP and Affordable Housing Program
1,003
1,093
Non-Federal liabilities:
2202
Interest payable
1,339
1,737
2203
Debt
1,028,135
1,016,403
2207
Deposit funds and other borrowing
8,220
8,249
2207
Other
3,881
4,313
2999
Total liabilities
1,042,578
1,031,795
NET POSITION:
3100
Invested capital
55,310
57,582
4999
Total liabilities and net position
1,097,888
1,089,377
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, 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
Agricultural Credit Bank
Status of Direct Loans (in millions of dollars)
Identification code 912–4991–0–4–351
2018 actual
2019 est.
2020 est.
Cumulative balance of direct loans outstanding:
1210
Outstanding, start of year
94,203
98,335
100,244
1231
Disbursements: Direct loan disbursements
387,611
399,000
410,724
1251
Repayments: Repayments and prepayments
–383,422
–397,039
–407,720
1263
Write-offs for default: Direct loans
–57
–52
–59
1290
Outstanding, end of year
98,335
100,244
103,189
CoBank, Agricultural Credit Bank (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 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. 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.
Statement of Changes in Net Worth (in thousands of dollars)
2017 act.
2018 act.
2019 est.
2020 est.
Beginning balance of net worth
8,653,830
8,897,129
9,058,428
9,542,518
Capital stock and participations issued
87,343
75,513
72,263
53,580
Capital stock and participations retired
25,890
31,164
50,324
40,596
Net income
961,547
1,328,251
971,144
1,005,492
Cash/Dividends/Patronage Distributions
–573,129
–655,756
–554,351
–544,891
Other, net
–206,572
–555,545
45,358
44,438
Ending balance of net worth
8,897,129
9,058,428
9,542,518
10,060,541
Financing Activities (in thousands of dollars)
2017 act.
2018 act.
2019 est.
2020 est.
Beginning balance of outstanding system obligations
107,407,980
112,319,658
115,909,963
115,991,495
Consolidated systemwide and other bank bonds issued
38,993,663
44,632,727
45,944,156
47,294,118
Consolidated systemwide and other bank bonds retired
38,175,063
35,721,693
46,347,493
44,799,668
Consolidated systemwide notes, net
4,130,172
–5,295,962
500,000
500,000
Other (Net)
–37,094
–24,767
–15,131
–11,879
Ending balance of outstanding system obligations
112,319,658
115,909,963
115,991,495
118,974,066
Balance Sheet (in millions of dollars)
Identification code 912–4991–0–4–351
2017 actual
2018 actual
ASSETS:
Non-Federal assets:
1201
Cash and investment securities
29,146
28,969
1206
Accrued interest receivable on loans
364
432
Net value of assets related to direct loans receivable and acquired defaulted guaranteed loans receivable:
1601
Direct loans, gross
94,202
98,335
1603
Allowance for estimated uncollectible loans and interest (-)
–575
–586
1699
Value of assets related to direct loans
93,627
97,749
1803
Other Federal assets: Property, plant and equipment, net
1,199
854
1999
Total assets
124,336
128,004
LIABILITIES:
2104
Federal liabilities: Resources payable to Treasury
1,353
1,357
Non-Federal liabilities:
2201
Consolidated systemwide and other bank bonds
112,320
115,910
2201
Notes payable and other interest-bearing liabilities
1,458
1,262
2202
Accrued interest payable
308
416
2999
Total liabilities
115,439
118,945
NET POSITION:
3300
Cumulative results of operations
8,897
9,059
4999
Total liabilities and net position
124,336
128,004
Farm Credit Banks
Status of Direct Loans (in millions of dollars)
Identification code 912–4992–0–4–371
2018 actual
2019 est.
2020 est.
Cumulative balance of direct loans outstanding:
1210
Outstanding, start of year
126,994
133,532
137,320
1231
Disbursements: Direct loan disbursements
212,067
219,328
230,395
1251
Repayments: Repayments and prepayments
–205,525
–215,521
–225,171
1263
Write-offs for default: Direct loans
–4
–19
–28
1290
Outstanding, end of year
133,532
137,320
142,516
The Agricultural Credit Act of 1987 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. 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, 2018: 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, 2018, provided funds to one Federal Land Credit Association and 46 Agricultural
Credit Associations. 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.
Statement of Changes in Net Worth (in thousands of dollars)
2017 act.
2018 act.
2019 est.
2020 est.
Beginning balance of net worth
9,480,347
9,930,452
10,072,862
10,146,789
Capital stock and participations issued
246,055
195,623
84,163
86,583
Capital stock and participations retired
50,415
27,943
17,830
16,702
Surplus Retired
–5,866
42
0
0
Net income
1,084,095
1,070,908
994,727
1,027,758
Cash/Dividends/Patronage Distributions
–847,192
–973,857
–1,001,983
–1,002,641
Other, net
11,696
–122,279
14,850
153,467
Ending balance of net worth
9,930,452
10,072,862
10,146,789
10,395,254
Financing Activities (in thousands of dollars)
2017 act.
2018 act.
2019 est.
2020 est.
Beginning balance of outstanding system obligations
144,502,285
145,600,456
152,736,019
159,126,807
Consolidated systemwide and other bank bonds issued
226,875,182
217,751,504
235,069,409
242,891,286
Consolidated systemwide and other bank bonds retired
220,736,779
209,655,204
229,198,165
238,254,032
Consolidated systemwide notes, net
–5,052,998
–967,779
519,544
1,188,354
Other (Net)
12,766
7,042
0
0
Ending balance of outstanding system obligations
145,600,456
152,736,019
159,126,807
164,952,415
Balance Sheet (in millions of dollars)
Identification code 912–4992–0–4–371
2017 actual
2018 actual
ASSETS:
Non-Federal assets:
1201
Cash and investment securities
29,276
29,926
1206
Accrued Interest Receivable
648
788
Net value of assets related to direct loans receivable and acquired defaulted guaranteed loans receivable:
1601
Direct loans, gross
126,994
133,532
1603
Allowance for estimated uncollectible loans and interest (-)
–48
–55
1699
Value of assets related to direct loans
126,946
133,477
1803
Other Federal assets: Property, plant and equipment, net
577
671
1999
Total assets
157,447
164,862
LIABILITIES:
2104
Federal liabilities: Resources payable to Treasury
412
394
Non-Federal liabilities:
2201
Consolidated systemwide and other bank bonds
145,600
152,736
2201
Notes payable and other interest-bearing liabilities
1,063
1,056
2202
Accrued interest payable
442
603
2999
Total liabilities
147,517
154,789
NET POSITION:
3300
Cumulative results of operations
9,930
10,073
4999
Total liabilities and net position
157,447
164,862
Federal Agricultural Mortgage Corporation
Status of Guaranteed Loans (in millions of dollars)
Identification code 912–4993–0–4–351
2018 actual
2019 est.
2020 est.
Cumulative balance of guaranteed loans outstanding:
2210
Outstanding, start of year
18,644
19,541
19,541
2231
Disbursements of new guaranteed loans
4,966
2251
Repayments and prepayments
–4,069
2290
Outstanding, end of year
19,541
19,541
19,541
Memorandum:
2299
Guaranteed amount of guaranteed loans outstanding, end of year
2,471
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.
Financing
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, 2018, 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.
Guarantees
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.
Regulation
Farmer Mac is federally regulated by FCA, acting through its Office of Secondary Market Oversight. FCA is responsible for
the supervision of, examination of, and rulemaking for Farmer Mac.
Balance Sheet (in millions of dollars)
Identification code 912–4993–0–4–351
2017 actual
2018 actual
ASSETS:
Non-Federal assets:
1201
Investment in securities
2,235
2,269
1206
Receivables, net
134
87
Net value of assets related to direct loans receivable:
1401
Direct loans receivable, gross
14,844
15,546
1402
Interest receivable
110
136
1499
Net present value of assets related to direct loans
14,954
15,682
1801
Other Federal assets: Cash and other monetary assets
367
436
1999
Total assets
17,690
18,474
LIABILITIES:
Non-Federal liabilities:
2201
Accounts payable
51
283
2202
Interest payable
62
87
2203
Debt
16,846
17,285
2204
Liabilities for loan guarantees
37
41
2999
Total liabilities
16,996
17,696
NET POSITION:
3300
Invested capital
694
778
4999
Total liabilities and net position
17,690
18,474