Lenders
Which lenders benefit from Farmer Mac's programs?

Farmer Mac benefits lenders serving important segments of rural America including:

  • Farmers, ranchers and agribusinesses
  • Community businesses and service facilities such as schools and first responder’s facilities (fire and police stations)
  • Cooperative rural utilities lenders and their cooperative borrowers

Lenders serving these segments include commercial banks, Farm Credit System institutions, insurance companies, credit unions and mortgage companies.

 


Farmer Mac's Programs
What programs does Farmer Mac bring to lenders?

Farmer Mac conducts its activities through three programs: Farmer Mac I, Farmer Mac II and Rural Utilities.

Farmer Mac I
Lenders turn to the Farmer Mac I program to derive important secondary market benefits for farm and ranch first-mortgage loans.

Under the umbrella of Farmer Mac I, lenders can choose from three product options to help them accomplish their goals.


Farmer Mac II
Participation in the Farmer Mac II program affords lenders ready access to competitively-priced funding.

Farmer Mac's subsidiary, Farmer Mac II LLC, purchases the guaranteed portions of loans guaranteed by the United States Department of Agriculture (USDA) under the following programs:

ABA/Farmer Mac Alliance
An alliance built for growth.

The Alliance between Farmer Mac and the American Bankers Association (ABA) enables ABA-member banks to receive preferred pricing and other important benefits.


ICBA/Farmer Mac Program
Ready, Set, Grow!

Members of the Independent Community Bankers of America (ICBA) who are also approved Farmer Mac I Sellers can receive valuable benefits from the Farmer Mac secondary market as part of the ICBA/Farmer Mac Program.

Loan Documentation Services
PPDocs, Inc. is the preferred document preparation provider for Farmer Mac.

When it comes time to prepare documents for loan closing, Farmer Mac Sellers have the option of preparing the documents using their own documentation preparation method or using PPDocs Inc., a documentation preparation service available to Farmer Mac Sellers of loans.


Collateral Valuation
Farmer Mac looks for candid, impartial and reliable information about the property that serves as security for a loan sold to Farmer Mac.

Appraisal reports serve three purposes:

  • Identify the “value” in the loan-to-value ratio,
  • Assess the security property’s contribution to the borrower’s financial strength and, for income producing properties, the borrower’s debt service capacity
  • Identify, and understand the security property’s market characteristics and risk.