[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
2021 actual
2022 est.
2023 est.
Cumulative balance of direct loans outstanding:
1210
Outstanding, start of year
172,108
110,910
110,910
1251
Repayments: Net repayments and prepayments
–61,198
1290
Outstanding, end of year
110,910
110,910
110,910
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,
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
2020 actual
2021 actual
ASSETS:
Federal assets:
Investments in U.S. securities:
1102
Treasury securities, par
135,972
92,192
1201
Non-Federal assets: Investments in non-Federal securities, net
12,774
27,630
Net value of assets related to direct loans receivable and acquired defaulted guaranteed loans receivable:
1601
Mortgage Loans and Mortgage Related Securities
115,986
77,974
1601
Mortgage Loans and Mortgage Related Securities - Consolidated Trusts
3,439,678
3,831,578
1604
Direct loans and interest receivable, net
3,555,664
3,909,552
1606
Acquired Property, net
1,462
1,261
1699
Value of assets related to direct loans
3,557,126
3,910,813
Other Federal assets:
1801
Cash and other monetary assets
135,695
155,522
1901
Other assets
23,036
23,052
1999
Total assets
3,864,603
4,209,209
LIABILITIES:
Non-Federal liabilities:
2202
Interest payable
9,982
9,299
2203
Debt
289,423
234,843
2203
Debt - Consolidated Trusts
3,530,381
3,907,626
2207
Other
14,124
15,268
2999
Total liabilities
3,843,910
4,167,036
NET POSITION:
3300
Senior Preferred Stock
120,836
120,836
3300
Private Equity
–100,143
–78,663
3300
Noncontrolling Interest
3999
Total net position
20,693
42,173
4999
Total liabilities and net position
3,864,603
4,209,209
Mortgage-backed Securities
Status of Direct Loans (in millions of dollars)
Identification code 915–4987–0–4–371
2021 actual
2022 est.
2023 est.
Cumulative balance of direct loans outstanding:
1210
Outstanding, start of year
3,481,562
3,831,364
3,831,364
1231
Disbursements: Direct loan disbursements
1,595,052
1251
Repayments: Repayments and prepayments
–1,245,250
1290
Outstanding, end of year
3,831,364
3,831,364
3,831,364
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
2021 actual
2022 est.
2023 est.
Cumulative balance of direct loans outstanding:
1210
Outstanding, start of year
198,176
113,773
113,773
1251
Repayments: Repayments and prepayments
–84,403
1290
Outstanding, end of year
113,773
113,773
113,773
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,
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
2020 actual
2021 actual
ASSETS:
Federal assets:
Investments in U.S. securities:
1102
Treasury securities, par
28,497
30,513
1201
Non-Federal assets: Investments in non-Federal securities, net
99,252
89,512
Net value of assets related to direct loans receivable and acquired defaulted guaranteed loans receivable:
1601
Mortgage Loans and Mortgage Related Securities
147,937
83,380
1601
Mortgage Loans and Mortgage Related Securities - Consolidated Trusts
2,115,509
2,671,954
1604
Direct loans and interest receivable, net
2,263,446
2,755,334
1606
Acquired property, net
1699
Value of assets related to direct loans
2,263,446
2,755,334
Other Federal assets:
1801
Cash and other monetary assets
56,990
56,526
1901
Other assets
5,886
6,099
1999
Total assets
2,454,071
2,937,984
LIABILITIES:
Non-Federal liabilities:
2202
Interest payable
6,020
6,049
2203
Debt
284,896
193,896
2203
Debt - Consolidated Trusts
2,138,420
2,701,530
2207
Other
10,844
11,198
2999
Total liabilities
2,440,180
2,912,673
NET POSITION:
3300
Senior Preferred Stock
72,648
72,648
3300
Private Equity
–58,757
–47,337
3999
Total net position
13,891
25,311
4999
Total liabilities and net position
2,454,071
2,937,984
Mortgage-backed Securities
Status of Direct Loans (in millions of dollars)
Identification code 914–4989–0–4–371
2021 actual
2022 est.
2023 est.
Cumulative balance of direct loans outstanding:
1210
Outstanding, start of year
2,459,232
3,025,320
3,025,320
1231
Disbursements: Direct loan disbursements
1,445,268
1251
Repayments: Repayments and prepayments
–879,180
1290
Outstanding, end of year
3,025,320
3,025,320
3,025,320
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
2021 actual
2022 est.
2023 est.
Cumulative balance of direct loans outstanding:
1210
Outstanding, start of year
547,118
406,234
406,234
1231
Disbursements: Direct loan disbursements
3,037,651
1251
Repayments: Repayments and prepayments
–3,172,665
1264
Other adjustments, net (+ or -)
–5,870
1290
Outstanding, end of year
406,234
406,234
406,234
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 6,600 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
2020 actual
2021 actual
ASSETS:
Federal assets:
Investments in U.S. securities:
1102
Treasury securities, par
62,060
40,574
Non-Federal assets:
1201
Investments in non-Federal securities, net
270,730
254,233
1206
Accounts receivable
1,271
921
1401
Net value of assets related to direct loans receivable: Direct loans receivable, gross
547,070
406,211
Other Federal assets:
1801
Cash and other monetary assets
9,988
6,805
1803
Property, plant and equipment, net
1901
Other assets
3,345
3,470
1999
Total assets
894,464
712,214
LIABILITIES:
2101
Federal liabilities: REFCORP and Affordable Housing Program
1,064
933
Non-Federal liabilities:
2202
Interest payable
928
776
2203
Debt
821,933
641,954
2207
Deposit funds and other borrowing
14,952
4,190
2207
Other
4,116
15,563
2999
Total liabilities
842,993
663,416
NET POSITION:
3100
Invested capital
51,471
48,798
4999
Total liabilities and net position
894,464
712,214
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.
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 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
2021 actual
2022 est.
2023 est.
Cumulative balance of direct loans outstanding:
1210
Outstanding, start of year
111,985
119,056
126,405
1231
Disbursements: Direct loan disbursements
531,680
558,533
586,743
1251
Repayments: Repayments and prepayments
–524,613
–551,139
–580,315
1263
Write-offs for default: Direct loans
–45
–43
1264
Other adjustments, net (+ or -)
4
1290
Outstanding, end of year
119,056
126,405
132,790
CoBank, Agricultural Credit Bank, 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 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
20 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)
2020 act.
2021 act.
2022 est.
2023 est.
Beginning balance of net worth
10,447,308
11,679,369
11,989,797
12,703,629
Capital stock and participations issued
121,516
203,577
750,000
35,000
Capital stock and participations retired
34,792
37,474
401,907
645,652
Net income
1,194,308
1,395,511
1,229,315
1,303,053
Cash/Dividends/Patronage Distributions
–607,179
–791,028
–735,817
–751,140
Other, net
558,208
–460,158
–127,759
–137,009
Ending balance of net worth
11,679,369
11,989,797
12,703,629
12,507,881
Financing Activities (in thousands of dollars)
2020 act.
2021 act.
2022 est.
2023 est.
Beginning balance of outstanding system obligations
122,493,375
132,426,345
138,073,631
148,925,971
Consolidated systemwide and other bank bonds issued
78,143,926
70,689,889
74,260,203
78,010,842
Consolidated systemwide and other bank bonds retired
67,723,738
64,124,193
63,401,665
69,165,072
Consolidated systemwide notes, net
–471,800
–908,676
0
0
Other (Net)
–15,418
–9,734
–6,198
–4,437
Ending balance of outstanding system obligations
132,426,345
138,073,631
148,925,971
157,767,304
Balance Sheet (in millions of dollars)
Identification code 912–4991–0–4–351
2020 actual
2021 actual
ASSETS:
Non-Federal assets:
1201
Cash and investment securities
34,486
34,430
1206
Accrued interest receivable on loans
412
382
Net value of assets related to direct loans receivable and acquired defaulted guaranteed loans receivable:
1601
Direct loans, gross
111,984
119,055
1603
Allowance for estimated uncollectible loans and interest (-)
–631
–631
1699
Value of assets related to direct loans
111,353
118,424
1803
Other Federal assets: Property, plant and equipment, net
2,100
1,538
1999
Total assets
148,351
154,774
LIABILITIES:
2104
Federal liabilities: Resources payable to Treasury
2,179
2,401
Non-Federal liabilities:
2201
Consolidated systemwide and other bank bonds
132,426
138,074
2201
Notes payable and other interest-bearing liabilities
1,716
2,008
2202
Accrued interest payable
351
301
2999
Total liabilities
136,672
142,784
NET POSITION:
3300
Cumulative results of operations
11,679
11,990
4999
Total liabilities and net position
148,351
154,774
Farm Credit Banks
Status of Direct Loans (in millions of dollars)
Identification code 912–4992–0–4–371
2021 actual
2022 est.
2023 est.
Cumulative balance of direct loans outstanding:
1210
Outstanding, start of year
153,942
168,327
180,806
1231
Disbursements: Direct loan disbursements
270,509
278,299
288,067
1251
Repayments: Repayments and prepayments
–256,124
–265,802
–276,051
1263
Write-offs for default: Direct loans
–18
–10
1290
Outstanding, end of year
168,327
180,806
192,812
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, 2021: 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, 2021, 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)
2020 act.
2021 act.
2022 est.
2023 est.
Beginning balance of net worth
10,559,072
11,405,805
11,843,457
12,286,453
Capital stock and participations issued
947,216
405,252
326,697
713,255
Capital stock and participations retired
446,022
69,968
16,751
305,935
Surplus Retired
118
2,254
1,460
0
Net income
1,347,161
1,449,394
1,347,538
1,302,829
Cash/Dividends/Patronage Distributions
–1,138,345
–1,315,316
–1,181,789
–1,103,034
Other, net
136,841
–29,456
–31,239
–216,894
Ending balance of net worth
11,405,805
11,843,457
12,286,453
12,676,675
Financing Activities (in thousands of dollars)
2020 act.
2021 act.
2022 est.
2023 est.
Beginning balance of outstanding system obligations
160,146,949
176,239,909
190,764,160
202,962,898
Consolidated systemwide and other bank bonds issued
293,432,765
267,995,223
236,935,100
231,294,955
Consolidated systemwide and other bank bonds retired
277,598,044
253,607,721
224,749,651
219,647,768
Consolidated systemwide notes, net
0
0
0
0
Other (Net)
258,239
136,749
13,289
–54,809
Ending balance of outstanding system obligations
176,239,909
190,764,160
202,962,898
214,555,276
Balance Sheet (in millions of dollars)
Identification code 912–4992–0–4–371
2020 actual
2021 actual
ASSETS:
Non-Federal assets:
1201
Cash and investment securities
34,631
35,853
1206
Accrued Interest Receivable
686
669
Net value of assets related to direct loans receivable and acquired defaulted guaranteed loans receivable:
1601
Direct loans, gross
153,946
168,327
1603
Allowance for estimated uncollectible loans and interest (-)
–69
–71
1699
Value of assets related to direct loans
153,877
168,256
1803
Other Federal assets: Property, plant and equipment, net
1,040
965
1999
Total assets
190,234
205,743
LIABILITIES:
2104
Federal liabilities: Resources payable to Treasury
674
572
Non-Federal liabilities:
2201
Consolidated systemwide and other bank bonds
176,240
190,764
2201
Notes payable and other interest-bearing liabilities
1,545
2,230
2202
Accrued interest payable
369
334
2999
Total liabilities
178,828
193,900
NET POSITION:
3300
Cumulative results of operations
11,406
11,843
4999
Total liabilities and net position
190,234
205,743
Federal Agricultural Mortgage Corporation
Status of Guaranteed Loans (in millions of dollars)
Identification code 912–4993–0–4–351
2021 actual
2022 est.
2023 est.
Cumulative balance of guaranteed loans outstanding:
2210
Outstanding, start of year
21,989
23,119
23,119
2231
Disbursements of new guaranteed loans
6,831
2251
Repayments and prepayments
–5,701
2290
Outstanding, end of year
23,119
23,119
23,119
Memorandum:
2299
Guaranteed amount of guaranteed loans outstanding, end of year
2,723
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 Agricultural Improvement Act of 2018, increased 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 legislation, 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 considered 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 through FCA's 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
2020 actual
2021 actual
ASSETS:
Non-Federal assets:
1201
Investment in securities
3,577
3,742
1206
Receivables, net
106
73
Net value of assets related to direct loans receivable:
1401
Direct loans receivable, gross
19,252
19,886
1402
Interest receivable
153
144
1499
Net present value of assets related to direct loans
19,405
20,030
1801
Other Federal assets: Cash and other monetary assets
911
899
1999
Total assets
23,999
24,744
LIABILITIES:
Non-Federal liabilities:
2201
Accounts payable
55
68
2202
Interest payable
93
83
2203
Debt
22,882
23,356
2204
Liabilities for loan guarantees
39
40
2999
Total liabilities
23,069
23,547
NET POSITION:
3300
Invested capital
930
1,197
4999
Total liabilities and net position
23,999
24,744