[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
2019 actual
2020 est.
2021 est.
Cumulative balance of direct loans outstanding:
1210
Outstanding, start of year
199,114
176,989
176,989
1251
Repayments: Net repayments and prepayments
–22,125
1290
Outstanding, end of year
176,989
176,989
176,989
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,
2019, Fannie Mae had received $119.8 billion under the PSPA, and had made a total of $181.4 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.
Balance Sheet (in millions of dollars)
Identification code 915–4986–0–4–371
2018 actual
2019 actual
ASSETS:
Federal assets:
Investments in U.S. securities:
1102
Treasury securities, par
37,328
36,016
1201
Non-Federal assets: Investments in non-Federal securities, net
26,692
23,260
Net value of assets related to direct loans receivable and acquired defaulted guaranteed loans receivable:
1601
Mortgage Loans and Mortgage Related Securities
131,599
118,076
1601
Mortgage Loans and Mortgage Related Securities - Consolidated Trusts
3,111,551
3,206,856
1604
Direct loans and interest receivable, net
3,243,150
3,324,932
1606
Acquired Property, net
2,722
2,452
1699
Value of assets related to direct loans
3,245,872
3,327,384
Other Federal assets:
1801
Cash and other monetary assets
76,845
95,782
1901
Other assets
14,368
11,994
1999
Total assets
3,401,105
3,494,436
LIABILITIES:
Non-Federal liabilities:
2202
Interest payable
10,105
10,400
2203
Debt
246,682
213,522
2203
Debt - Consolidated Trusts
3,127,688
3,248,336
2207
Other
9,655
11,836
2999
Total liabilities
3,394,130
3,484,094
NET POSITION:
3300
Senior Preferred Stock
120,836
120,836
3300
Private Equity
–113,861
–110,494
3300
Noncontrolling Interest
3999
Total net position
6,975
10,342
4999
Total liabilities and net position
3,401,105
3,494,436
Mortgage-backed Securities
Status of Direct Loans (in millions of dollars)
Identification code 915–4987–0–4–371
2019 actual
2020 est.
2021 est.
Cumulative balance of direct loans outstanding:
1210
Outstanding, start of year
3,097,227
3,218,309
3,218,309
1231
Disbursements: Direct loan disbursements
578,435
1251
Repayments: Repayments and prepayments
–457,353
1290
Outstanding, end of year
3,218,309
3,218,309
3,218,309
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
2019 actual
2020 est.
2021 est.
Cumulative balance of direct loans outstanding:
1210
Outstanding, start of year
227,804
221,601
221,601
1251
Repayments: Repayments and prepayments
–6,203
1290
Outstanding, end of year
221,601
221,601
221,601
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,
2019, Freddie Mac had received $71.6 billion under the PSPA, and had made a total of $119.7 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
2018 actual
2019 actual
ASSETS:
Federal assets:
Investments in U.S. securities:
1102
Treasury securities, par
25,479
24,282
1201
Non-Federal assets: Investments in non-Federal securities, net
48,540
51,187
Net value of assets related to direct loans receivable and acquired defaulted guaranteed loans receivable:
1601
Mortgage Loans and Mortgage Related Securities
138,103
140,557
1601
Mortgage Loans and Mortgage Related Securities - Consolidated Trusts
1,814,776
1,905,633
1604
Direct loans and interest receivable, net
1,952,879
2,046,190
1606
Acquired property, net
1699
Value of assets related to direct loans
1,952,879
2,046,190
Other Federal assets:
1801
Cash and other monetary assets
28,683
42,803
1901
Other assets
7,876
5,784
1999
Total assets
2,063,457
2,170,246
LIABILITIES:
Non-Federal liabilities:
2202
Interest payable
6,418
6,688
2203
Debt
276,945
279,951
2203
Debt - Consolidated Trusts
1,765,045
1,869,308
2207
Other
9,490
7,625
2999
Total liabilities
2,057,898
2,163,572
NET POSITION:
3300
Senior Preferred Stock
72,648
72,648
3300
Private Equity
–67,089
–65,974
3999
Total net position
5,559
6,674
4999
Total liabilities and net position
2,063,457
2,170,246
Mortgage-backed Securities
Status of Direct Loans (in millions of dollars)
Identification code 914–4989–0–4–371
2019 actual
2020 est.
2021 est.
Cumulative balance of direct loans outstanding:
1210
Outstanding, start of year
2,045,101
2,190,219
2,190,219
1231
Disbursements: Direct loan disbursements
455,286
1251
Repayments: Repayments and prepayments
–310,168
1290
Outstanding, end of year
2,190,219
2,190,219
2,190,219
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
2019 actual
2020 est.
2021 est.
Cumulative balance of direct loans outstanding:
1210
Outstanding, start of year
766,096
728,188
728,188
1231
Disbursements: Direct loan disbursements
9,351,696
9,351,696
9,351,696
1251
Repayments: Repayments and prepayments
–9,395,946
–9,351,696
–9,351,696
1264
Other adjustments, net (+ or -)
6,342
1290
Outstanding, end of year
728,188
728,188
728,188
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 6,800 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. 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
2018 actual
2019 actual
ASSETS:
Federal assets:
Investments in U.S. securities:
1102
Treasury securities, par
8,623
54,001
Non-Federal assets:
1201
Investments in non-Federal securities, net
309,768
297,831
1206
Accounts receivable
2,009
2,034
1401
Net value of assets related to direct loans receivable: Direct loans receivable, gross
766,197
728,261
Other Federal assets:
1801
Cash and other monetary assets
772
769
1803
Property, plant and equipment, net
308
1901
Other assets
1,700
3,111
1999
Total assets
1,089,377
1,086,007
LIABILITIES:
2101
Federal liabilities: REFCORP and Affordable Housing Program
1,093
1,080
Non-Federal liabilities:
2202
Interest payable
1,737
1,909
2203
Debt
1,016,403
1,010,890
2207
Deposit funds and other borrowing
8,249
10,787
2207
Other
4,313
5,712
2999
Total liabilities
1,031,795
1,030,378
NET POSITION:
3100
Invested capital
57,582
55,629
4999
Total liabilities and net position
1,089,377
1,086,007
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 or Corporation), an independent
Federal Government-controlled corporation that collects insurance premiums from member banks to fund insurance reserves. All
of the FCSIC's operating expenses are also paid from the insurance premiums it receives from the System banks; as a result,
the FCSIC does 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
2019 actual
2020 est.
2021 est.
Cumulative balance of direct loans outstanding:
1210
Outstanding, start of year
98,335
101,899
106,074
1231
Disbursements: Direct loan disbursements
421,179
434,964
449,201
1251
Repayments: Repayments and prepayments
–417,605
–430,747
–445,673
1263
Write-offs for default: Direct loans
–10
–42
–56
1290
Outstanding, end of year
101,899
106,074
109,546
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 21 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)
2018 act.
2019 act.
2020 est.
2021 est.
Beginning balance of net worth
8,897,129
9,058,428
10,447,308
11,065,960
Capital stock and participations issued
75,513
78,467
124,024
110,276
Capital stock and participations retired
31,164
44,027
35,549
33,956
Net income
1,328,251
1,054,550
1,038,528
1,043,706
Cash/Dividends/Patronage Distributions
–655,756
–566,874
–550,148
–563,843
Other, net
–555,545
866,764
41,797
17,092
Ending balance of net worth
9,058,428
10,447,308
11,065,960
11,639,235
Financing Activities (in thousands of dollars)
2018 act.
2019 act.
2020 est.
2021 est.
Beginning balance of outstanding system obligations
112,319,658
115,909,963
122,493,375
123,101,653
Consolidated systemwide and other bank bonds issued
44,632,727
55,744,873
57,569,412
59,453,670
Consolidated systemwide and other bank bonds retired
35,721,693
48,978,751
56,949,226
55,397,663
Consolidated systemwide notes, net
–5,295,962
–167,077
0
0
Other (Net)
–24,767
–15,633
–11,908
–8,691
Ending balance of outstanding system obligations
115,909,963
122,493,375
123,101,653
127,148,969
Balance Sheet (in millions of dollars)
Identification code 912–4991–0–4–351
2018 actual
2019 actual
ASSETS:
Non-Federal assets:
1201
Cash and investment securities
28,969
33,318
1206
Accrued interest receivable on loans
432
452
Net value of assets related to direct loans receivable and acquired defaulted guaranteed loans receivable:
1601
Direct loans, gross
98,335
101,898
1603
Allowance for estimated uncollectible loans and interest (-)
–586
–621
1699
Value of assets related to direct loans
97,749
101,277
1803
Other Federal assets: Property, plant and equipment, net
854
1,323
1999
Total assets
128,004
136,370
LIABILITIES:
2104
Federal liabilities: Resources payable to Treasury
1,357
1,789
Non-Federal liabilities:
2201
Consolidated systemwide and other bank bonds
115,910
122,493
2201
Notes payable and other interest-bearing liabilities
1,262
1,194
2202
Accrued interest payable
416
447
2999
Total liabilities
118,945
125,923
NET POSITION:
3300
Cumulative results of operations
9,059
10,447
4999
Total liabilities and net position
128,004
136,370
Farm Credit Banks
Status of Direct Loans (in millions of dollars)
Identification code 912–4992–0–4–371
2019 actual
2020 est.
2021 est.
Cumulative balance of direct loans outstanding:
1210
Outstanding, start of year
133,532
139,911
145,812
1231
Disbursements: Direct loan disbursements
205,397
215,345
226,059
1251
Repayments: Repayments and prepayments
–199,012
–209,413
–218,970
1263
Write-offs for default: Direct loans
–6
–31
–36
1290
Outstanding, end of year
139,911
145,812
152,865
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, 2019: 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, 2019, 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)
2018 act.
2019 act.
2020 est.
2021 est.
Beginning balance of net worth
9,930,452
10,072,862
10,559,072
11,301,575
Capital stock and participations issued
195,623
257,973
478,473
501,439
Capital stock and participations retired
27,943
13,396
17,529
19,019
Surplus Retired
42
105
0
0
Net income
1,070,908
1,063,565
1,024,938
1,015,620
Cash/Dividends/Patronage Distributions
–973,857
–956,091
–1,006,646
–972,682
Other, net
–122,279
134,264
263,264
151,785
Ending balance of net worth
10,072,862
10,559,072
11,301,575
11,978,718
Financing Activities (in thousands of dollars)
2018 act.
2019 act.
2020 est.
2021 est.
Beginning balance of outstanding system obligations
145,600,456
152,736,019
160,146,949
166,089,986
Consolidated systemwide and other bank bonds issued
217,751,504
251,290,862
235,629,588
239,399,930
Consolidated systemwide and other bank bonds retired
209,655,204
243,996,390
229,662,565
232,658,290
Consolidated systemwide notes, net
–967,779
0
0
0
Other (Net)
7,042
116,458
–23,986
–24,945
Ending balance of outstanding system obligations
152,736,019
160,146,949
166,089,986
172,806,681
Balance Sheet (in millions of dollars)
Identification code 912–4992–0–4–371
2018 actual
2019 actual
ASSETS:
Non-Federal assets:
1201
Cash and investment securities
29,926
31,658
1206
Accrued Interest Receivable
788
937
Net value of assets related to direct loans receivable and acquired defaulted guaranteed loans receivable:
1601
Direct loans, gross
133,532
139,910
1603
Allowance for estimated uncollectible loans and interest (-)
–55
–60
1699
Value of assets related to direct loans
133,477
139,850
1803
Other Federal assets: Property, plant and equipment, net
671
758
1999
Total assets
164,862
173,203
LIABILITIES:
2104
Federal liabilities: Resources payable to Treasury
394
504
Non-Federal liabilities:
2201
Consolidated systemwide and other bank bonds
152,736
160,147
2201
Notes payable and other interest-bearing liabilities
1,056
1,370
2202
Accrued interest payable
603
623
2999
Total liabilities
154,789
162,644
NET POSITION:
3300
Cumulative results of operations
10,073
10,559
4999
Total liabilities and net position
164,862
173,203
Federal Agricultural Mortgage Corporation
Status of Guaranteed Loans (in millions of dollars)
Identification code 912–4993–0–4–351
2019 actual
2020 est.
2021 est.
Cumulative balance of guaranteed loans outstanding:
2210
Outstanding, start of year
19,541
20,933
20,933
2231
Disbursements of new guaranteed loans
5,025
2251
Repayments and prepayments
–3,633
2290
Outstanding, end of year
20,933
20,933
20,933
Memorandum:
2299
Guaranteed amount of guaranteed loans outstanding, end of year
2,568
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 of qualified loans, 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.
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
2018 actual
2019 actual
ASSETS:
Non-Federal assets:
1201
Investment in securities
2,269
3,157
1206
Receivables, net
87
78
Net value of assets related to direct loans receivable:
1401
Direct loans receivable, gross
15,546
17,333
1402
Interest receivable
136
159
1499
Net present value of assets related to direct loans
15,682
17,492
1801
Other Federal assets: Cash and other monetary assets
436
588
1999
Total assets
18,474
21,315
LIABILITIES:
Non-Federal liabilities:
2201
Accounts payable
283
63
2202
Interest payable
87
104
2203
Debt
17,285
20,359
2204
Liabilities for loan guarantees
41
39
2999
Total liabilities
17,696
20,565
NET POSITION:
3300
Invested capital
778
750
4999
Total liabilities and net position
18,474
21,315