[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
2020 actual
2021 est.
2022 est.
Cumulative balance of direct loans outstanding:
1210
Outstanding, start of year
176,989
172,108
172,108
1251
Repayments: Net repayments and prepayments
–4,881
1290
Outstanding, end of year
172,108
172,108
172,108
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 March 31, 2021,
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 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
2019 actual
2020 actual
ASSETS:
Federal assets:
Investments in U.S. securities:
1102
Treasury securities, par
36,016
135,972
1201
Non-Federal assets: Investments in non-Federal securities, net
23,260
12,774
Net value of assets related to direct loans receivable and acquired defaulted guaranteed loans receivable:
1601
Mortgage Loans and Mortgage Related Securities
118,076
115,986
1601
Mortgage Loans and Mortgage Related Securities - Consolidated Trusts
3,206,856
3,439,678
1604
Direct loans and interest receivable, net
3,324,932
3,555,664
1606
Acquired Property, net
2,452
1,462
1699
Value of assets related to direct loans
3,327,384
3,557,126
Other Federal assets:
1801
Cash and other monetary assets
95,782
135,695
1901
Other assets
11,994
23,036
1999
Total assets
3,494,436
3,864,603
LIABILITIES:
Non-Federal liabilities:
2202
Interest payable
10,400
9,982
2203
Debt
213,522
289,423
2203
Debt - Consolidated Trusts
3,248,336
3,530,381
2207
Other
11,836
14,124
2999
Total liabilities
3,484,094
3,843,910
NET POSITION:
3300
Senior Preferred Stock
120,836
120,836
3300
Private Equity
–110,494
–100,143
3300
Noncontrolling Interest
3999
Total net position
10,342
20,693
4999
Total liabilities and net position
3,494,436
3,864,603
Mortgage-backed Securities
Status of Direct Loans (in millions of dollars)
Identification code 915–4987–0–4–371
2020 actual
2021 est.
2022 est.
Cumulative balance of direct loans outstanding:
1210
Outstanding, start of year
3,218,309
3,481,562
3,481,562
1231
Disbursements: Direct loan disbursements
1,173,366
1251
Repayments: Repayments and prepayments
–910,113
1290
Outstanding, end of year
3,481,562
3,481,562
3,481,562
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
2020 actual
2021 est.
2022 est.
Cumulative balance of direct loans outstanding:
1210
Outstanding, start of year
221,601
198,176
198,176
1251
Repayments: Repayments and prepayments
–23,425
1290
Outstanding, end of year
198,176
198,176
198,176
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 March 31, 2021,
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 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
2019 actual
2020 actual
ASSETS:
Federal assets:
Investments in U.S. securities:
1102
Treasury securities, par
24,282
28,497
1201
Non-Federal assets: Investments in non-Federal securities, net
51,187
99,252
Net value of assets related to direct loans receivable and acquired defaulted guaranteed loans receivable:
1601
Mortgage Loans and Mortgage Related Securities
140,557
147,937
1601
Mortgage Loans and Mortgage Related Securities - Consolidated Trusts
1,905,633
2,115,509
1604
Direct loans and interest receivable, net
2,046,190
2,263,446
1606
Acquired property, net
1699
Value of assets related to direct loans
2,046,190
2,263,446
Other Federal assets:
1801
Cash and other monetary assets
42,803
56,990
1901
Other assets
5,784
5,886
1999
Total assets
2,170,246
2,454,071
LIABILITIES:
Non-Federal liabilities:
2202
Interest payable
6,688
6,020
2203
Debt
279,951
284,896
2203
Debt - Consolidated Trusts
1,869,308
2,138,420
2207
Other
7,625
10,844
2999
Total liabilities
2,163,572
2,440,180
NET POSITION:
3300
Senior Preferred Stock
72,648
72,648
3300
Private Equity
–65,974
–58,757
3999
Total net position
6,674
13,891
4999
Total liabilities and net position
2,170,246
2,454,071
Mortgage-backed Securities
Status of Direct Loans (in millions of dollars)
Identification code 914–4989–0–4–371
2020 actual
2021 est.
2022 est.
Cumulative balance of direct loans outstanding:
1210
Outstanding, start of year
2,190,219
2,459,232
2,459,232
1231
Disbursements: Direct loan disbursements
897,670
1251
Repayments: Repayments and prepayments
–628,657
1290
Outstanding, end of year
2,459,232
2,459,232
2,459,232
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
2020 actual
2021 est.
2022 est.
Cumulative balance of direct loans outstanding:
1210
Outstanding, start of year
728,188
546,987
546,987
1231
Disbursements: Direct loan disbursements
5,466,399
1251
Repayments: Repayments and prepayments
–5,651,985
1264
Other adjustments, net (+ or -)
4,385
1290
Outstanding, end of year
546,987
546,987
546,987
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 6,700 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 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
2019 actual
2020 actual
ASSETS:
Federal assets:
Investments in U.S. securities:
1102
Treasury securities, par
54,001
62,060
Non-Federal assets:
1201
Investments in non-Federal securities, net
297,831
270,730
1206
Accounts receivable
2,034
1,271
1401
Net value of assets related to direct loans receivable: Direct loans receivable, gross
728,261
547,070
Other Federal assets:
1801
Cash and other monetary assets
769
9,988
1803
Property, plant and equipment, net
1901
Other assets
3,111
3,345
1999
Total assets
1,086,007
894,464
LIABILITIES:
2101
Federal liabilities: REFCORP and Affordable Housing Program
1,080
1,064
Non-Federal liabilities:
2202
Interest payable
1,909
928
2203
Debt
1,010,890
821,933
2207
Deposit funds and other borrowing
10,787
14,952
2207
Other
5,712
4,116
2999
Total liabilities
1,030,378
842,993
NET POSITION:
3100
Invested capital
55,629
51,471
4999
Total liabilities and net position
1,086,007
894,464
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. The Federal Agricultural Mortgage corporation (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. System 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 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
2020 actual
2021 est.
2022 est.
Cumulative balance of direct loans outstanding:
1210
Outstanding, start of year
101,899
111,985
114,902
1231
Disbursements: Direct loan disbursements
453,272
470,535
488,455
1251
Repayments: Repayments and prepayments
–443,143
–467,578
–484,029
1263
Write-offs for default: Direct loans
–43
–40
–50
1290
Outstanding, end of year
111,985
114,902
119,278
CoBank, Agricultural Credit Bank (ACB), which is headquartered near Denver, Colorado, provides funding to eligible cooperatives
nationwide and Agricultural Credit Associations (ACAs) in its chartered district. CoBank is the only Agricultural Credit
Bank (ACB) in the System. An ACB operates under statutory authority that combines the authorities of an FCB and a bank for
cooperatives (BC). CoBank is the only System bank with the authorities of a BC. 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. And, in exercising
its BC authority, 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)
2019 act.
2020 act.
2021 est.
2022 est.
Beginning balance of net worth
9,058,428
10,447,308
11,679,369
12,218,314
Capital stock and participations issued
78,467
121,516
193,897
107,795
Capital stock and participations retired
44,027
34,792
35,726
52,425
Net income
1,054,550
1,194,308
1,106,170
1,125,478
Cash/Dividends/Patronage Distributions
–566,874
–607,179
–619,336
–647,602
Other, net
866,764
558,208
–106,060
–222,875
Ending balance of net worth
10,447,308
11,679,369
12,218,314
12,528,685
Financing Activities (in thousands of dollars)
2019 act.
2020 act.
2021 est.
2022 est.
Beginning balance of outstanding system obligations
115,909,963
122,493,375
132,426,345
134,310,007
Consolidated systemwide and other bank bonds issued
55,744,873
78,143,926
81,120,041
84,209,501
Consolidated systemwide and other bank bonds retired
48,978,751
67,723,738
79,228,169
78,263,814
Consolidated systemwide notes, net
–167,077
–471,800
0
0
Other (Net)
–15,633
–15,418
–8,210
–6,988
Ending balance of outstanding system obligations
122,493,375
132,426,345
134,310,007
140,248,706
Balance Sheet (in millions of dollars)
Identification code 912–4991–0–4–351
2019 actual
2020 actual
ASSETS:
Non-Federal assets:
1201
Cash and investment securities
33,318
34,486
1206
Accrued interest receivable on loans
452
412
Net value of assets related to direct loans receivable and acquired defaulted guaranteed loans receivable:
1601
Direct loans, gross
101,898
111,984
1603
Allowance for estimated uncollectible loans and interest (-)
–621
–631
1699
Value of assets related to direct loans
101,277
111,353
1803
Other Federal assets: Property, plant and equipment, net
1,323
2,100
1999
Total assets
136,370
148,351
LIABILITIES:
2104
Federal liabilities: Resources payable to Treasury
1,789
2,179
Non-Federal liabilities:
2201
Consolidated systemwide and other bank bonds
122,493
132,426
2201
Notes payable and other interest-bearing liabilities
1,194
1,716
2202
Accrued interest payable
447
351
2999
Total liabilities
125,923
136,672
NET POSITION:
3300
Cumulative results of operations
10,447
11,679
4999
Total liabilities and net position
136,370
148,351
Farm Credit Banks
Status of Direct Loans (in millions of dollars)
Identification code 912–4992–0–4–371
2020 actual
2021 est.
2022 est.
Cumulative balance of direct loans outstanding:
1210
Outstanding, start of year
139,911
153,942
162,320
1231
Disbursements: Direct loan disbursements
224,885
233,059
243,711
1251
Repayments: Repayments and prepayments
–210,851
–224,656
–234,492
1263
Write-offs for default: Direct loans
–3
–25
–35
1290
Outstanding, end of year
153,942
162,320
171,504
The Agricultural Credit Act of 1987 (1987 Act) required the Federal Land Banks (FLBs) and Federal Intermediate Credit Banks
(FICBs) to merge into an 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, 2020: 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, 2020, 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
(1971 Act).
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)
2019 act.
2020 act.
2021 est.
2022 est.
Beginning balance of net worth
10,072,862
10,559,072
11,405,805
11,528,837
Capital stock and participations issued
257,973
947,216
233,558
228,611
Capital stock and participations retired
13,396
446,022
0
0
Surplus Retired
105
118
100
100
Net income
1,063,565
1,347,161
1,177,480
1,174,060
Cash/Dividends/Patronage Distributions
–956,091
–1,138,345
–1,145,987
–1,149,031
Other, net
134,264
136,841
–141,919
10,148
Ending balance of net worth
10,559,072
11,405,805
11,528,837
11,792,525
Financing Activities (in thousands of dollars)
2019 act.
2020 act.
2021 est.
2022 est.
Beginning balance of outstanding system obligations
152,736,019
160,146,949
176,239,909
183,747,670
Consolidated systemwide and other bank bonds issued
251,290,862
293,432,765
247,774,037
236,034,133
Consolidated systemwide and other bank bonds retired
243,996,390
277,598,044
239,731,324
226,904,933
Consolidated systemwide notes, net
0
0
0
0
Other (Net)
116,458
258,239
–534,952
51,082
Ending balance of outstanding system obligations
160,146,949
176,239,909
183,747,670
192,927,952
Balance Sheet (in millions of dollars)
Identification code 912–4992–0–4–371
2019 actual
2020 actual
ASSETS:
Non-Federal assets:
1201
Cash and investment securities
31,658
34,631
1206
Accrued Interest Receivable
937
686
Net value of assets related to direct loans receivable and acquired defaulted guaranteed loans receivable:
1601
Direct loans, gross
139,910
153,941
1603
Allowance for estimated uncollectible loans and interest (-)
–60
–69
1699
Value of assets related to direct loans
139,850
153,872
1803
Other Federal assets: Property, plant and equipment, net
758
1,080
1999
Total assets
173,203
190,269
LIABILITIES:
2104
Federal liabilities: Resources payable to Treasury
504
709
Non-Federal liabilities:
2201
Consolidated systemwide and other bank bonds
160,147
176,240
2201
Notes payable and other interest-bearing liabilities
1,370
1,545
2202
Accrued interest payable
623
369
2999
Total liabilities
162,644
178,863
NET POSITION:
3300
Cumulative results of operations
10,559
11,406
4999
Total liabilities and net position
173,203
190,269
Federal Agricultural Mortgage Corporation
Status of Guaranteed Loans (in millions of dollars)
Identification code 912–4993–0–4–351
2020 actual
2021 est.
2022 est.
Cumulative balance of guaranteed loans outstanding:
2210
Outstanding, start of year
20,933
21,989
21,989
2231
Disbursements of new guaranteed loans
5,665
2251
Repayments and prepayments
–4,609
2290
Outstanding, end of year
21,989
21,989
21,989
Memorandum:
2299
Guaranteed amount of guaranteed loans outstanding, end of year
2,735
Farmer Mac
Farmer Mac is authorized under the Farm Credit Act of 1971 (as amended by the 1987 Act) to create a secondary market for agricultural
real estate and rural home mortgages. The Farmer Mac title of the 1971 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. 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.
Most recently, the 2018 Farm Bill, the Agricultural Improvement Act of 2018, increase the acreage exception provided in section
8.8(c)(2) of the Farm Credit Act of 1971 from 1,000 acres to 2,000 acres. The change became effective on June 18, 2020.
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
2019 actual
2020 actual
ASSETS:
Non-Federal assets:
1201
Investment in securities
3,157
3,577
1206
Receivables, net
78
106
Net value of assets related to direct loans receivable:
1401
Direct loans receivable, gross
17,333
19,252
1402
Interest receivable
159
153
1499
Net present value of assets related to direct loans
17,492
19,405
1801
Other Federal assets: Cash and other monetary assets
588
911
1999
Total assets
21,315
23,999
LIABILITIES:
Non-Federal liabilities:
2201
Accounts payable
63
55
2202
Interest payable
104
93
2203
Debt
20,359
22,882
2204
Liabilities for loan guarantees
39
39
2999
Total liabilities
20,565
23,069
NET POSITION:
3300
Invested capital
750
930
4999
Total liabilities and net position
21,315
23,999