Monday, May 12, 2008 
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Farmer Mac Programs
   
Farmer Mac is America's secondary market for first mortgage agricultural real estate loans. Farmer Mac was created by Congress to improve the ability of agricultural lenders to provide credit to America's farmers, ranchers and rural homeowners, businesses and communities. We do this primarily by purchasing qualified loans from lenders, thereby replenishing their source of funds to make new loans. Farmer Mac funds its loan purchases by issuing debt or securities backed by pools of loans and selling them into the capital markets. In so doing, Farmer Mac facilitates the flow of lendable money from Wall Street to rural America, thus providing a stable supply of mortgage credit to lenders and borrowers.

In the Farmer Mac I Program , Farmer Mac purchases qualified loans from lenders who are approved sellers, thereby replenishing their source of funds to make new loans. Farmer Mac meets lenders unique needs through structures that shift the credit risk to Farmer Mac while leaving the loans with the originating institution.

In the Farmer Mac II Program, Farmer Mac provides secondary market funding to support USDA guaranteed loans. Through Farmer Mac II, lenders sell the guaranteed portions of USDA loans directly to Farmer Mac. Farmer Mac buys the guaranteed portions at attractive rates, which allows agricultural lenders to increase profits and to provide better services to their borrowers and communities.

The Farmer Mac III Program option combines both Farmer Mac I and II by purchasing first-lien mortgage loans that are senior to loans guaranteed via state or federal programs.

Benefits of being a Farmer Mac I Seller
  • Strengthened customer relationships through new, competitive loan products
  • Enhanced return on equity through fee income
  • Reduced or eliminated credit risk and interest rate risk from lending activity
  • Renewed liquidity for additional lending
  • Increased capital leverage
is Farmer Mac’s commitment to superior customer service. It includes tools designed specifically for agricultural lenders to increase their lending power, allowing lenders to work smarter (instead of harder), use quick, easy loan applications for customers and get faster approvals. gives lenders the ability to prevail in a highly competitive market with less effort than ever before. This creative lending tool is becoming a necessity within the secondary market for farm real estate loans.

See the services highlighted on the website. The tools include:
Farmer Mac I Farm Loan Processing Assistance:
Click here to receive a list of the requirements for various loan submissions if you plan to package and submit the loan yourself.

Farmer Mac will assist you to process the loan as part of its AgPowerSM services. Click here to receive a list of the requirements for various loan submissions if you would like Farmer Mac to assist you to process the loan. Prices for packaging assistance are listed.