Lenders

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.

Description	Revised Date
Table of Contents	03/20/2009
Ch CV 101 Collateral Valuation - Standards and Guidelines	03/13/2012
Ch CV 201 Collateral Valuation - Loan Servicing	11/11/2011

• 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:

Number	Description	Revised Date
1	Comment and Guidance on Collateral Valuation Report Forms	06/03/2011
2	Sample Fee Appraiser Engagement Letter (Form 1023A) *	05/23/2012
5	Appraisal Report Content Requirements (Form 1027A)	05/18/2012
8	Assumptions and Limiting Conditions Example (Form 1037) *	05/18/2012
9	Environmental Disclosure (Form 1010A) *	05/18/2012
10	Irrigation and Drainage Supplement (Form 1013A)	05/18/2012
11	Permanent Planting Data Summary Example (Form 1034)	05/23/2012
12	Income Approach Example (Form 1035)	05/23/2012
13	Market Sale Data Summary Example (Form 1036)	05/23/2012
14	Collateral Assessment Report form 1047	07/03/2012
15	Collateral Inspection Report (Form 1038)	08/17/2012

*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.