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.
Lender Access
The Farmer Mac I program and its varied products are available to agricultural and agribusiness lenders.
Lenders accessing Farmer Mac I typically are seeking the ability to offer long-term fixed rates to their farm and ranch customers. The Farmer Mac I Farm and Ranch Loan rates are posted daily for lenders who have become Sellers after demonstrating they meet Farmer Mac’s eligibility requirements and signing a Seller/Servicer Agreement with Farmer Mac.
Farm and Ranch Mortgage Loans
The Farmer Mac I Farm and Ranch Loan program offers lenders the ability to sell whole loans to Farmer Mac, providing a risk management tool for their institution as well as a source of competitively-priced long-term fixed rates for their customers.
A brief description of the Farmer Mac I Farm and Ranch Loan program is outlined below including the maximum loan amount, underwriting standards and a description of the process to submit loans for consideration.
Products
When it comes time to select a loan term and type, Farmer Mac offers a variety of products for customers to choose from depending on their appetite for short-term flexibility and fixed-rate security.
Farmer Mac I Farm and Ranch products include adjustable rates and variable rates (whose pricing adjusts over time) as well as products where the rate is fixed as long as 25 years.
Loan Delivery
Farmer Mac’s “Cash Window” is the process through which Farmer Mac purchases Farm and Ranch Loans directly from Sellers.
At the “Cash Window,” Sellers obtain loan credit approvals, lock in interest rates and deliver the loans within the rate-lock period.
Portfolio Programs
Farmer Mac’s “in-portfolio” products help lenders manage capital and liquidity.
Capital and liquidity are two key measures of a lending institution’s financial success.
Seller/Servicer Guide
The Farmer Mac I Cash Window mortgage loan purchase program is described in the Seller/Servicer Guide.
The Farmer Mac Seller/Servicer Guide summarizes the process for selling Farmer Mac I Farm and Ranch loans to Farmer Mac. The Collateral Valuation Supplement identifies the requirements that apply to a valuation assignment.
