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 (including for purposes of hazard insurance amounts)
Farmer Mac’s Collateral Valuation Standards and Guidelines are contained in its Collateral Valuation Supplement (CV Supplement) to the Farmer Mac Seller/Servicer Guide. The CV Supplement can be accessed below.
- Chapter CV101 contains general collateral valuation standards and guidelines for Farm and Ranch loans including those for Specialized Agricultural Facilities. The final section of the chapter, Chapter CV 101.9, consists of a summary of all Farmer Mac Collateral Valuation Forms including a description of the form, its purpose and how it is to be used.
- Chapter CV201 addresses the collateral valuation-related standards and guidelines for loan servicing.
The Farmer Mac Farm and Ranch and Specialized Agricultural Facility Forms are listed below:
*The three forms marked with an asterisk are required for all Farmer Mac appraisals. While equivalents of the three required forms may be used (subject to approval by the Farmer Mac Underwriting Department), Sellers are strongly urged to use the specific Farmer Mac forms in order to expedite the review of the appraisal at the time of submission. The three required forms (or their equivalents), along with Form 1027A outlining the Appraisal Report Content Requirements), are integrated into the AgPower® Loan Origination System.
Farmer Mac’s Quick-Tip videos address frequently asked questions about Farmer Mac collateral valuation requirements.