GOVERNMENT-SPONSORED ENTERPRISES

This chapter contains descriptions of the data on the Government-sponsored enterprises listed below. These enterprises were established and chartered by the Federal Government for public policy purposes. They are not included in the Federal Budget because they are private companies, and their securities are not backed by the full faith and credit of the Federal Government. However, because of their public purpose, detailed statements of financial condition are presented, to the extent such information is available, on a basis that is as consistent as practicable with the basis for the budget data of Government agencies.

—The Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation provide assistance to the secondary market for residential mortgages.

—The Federal Home Loan Banks assist thrift institutions, banks, insurance companies, and credit unions in providing financing for housing and community development.

—Institutions of the Farm Credit System, which include the Agricultural Credit Bank and Farm Credit Banks, provide financial assistance to agriculture. They are regulated by the Farm Credit Administration.

—The Federal Agricultural Mortgage Corporation, also a Farm Credit System institution under the regulation of the Farm Credit Administration, provides a secondary market for agricultural real estate, rural housing loans, and certain rural utility loans, as well as for farm and business loans guaranteed by the U.S. Department of Agriculture.

Federal National Mortgage Association

Federal Funds

Portfolio Programs

Status of Direct Loans (in millions of dollars)


Identification code 39–4986–0–4–371 2013 actual 2014 est. 2015 est.

Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year 654,269 516,259 469,625
1251 Repayments: Net repayments and prepayments –138,010 –46,634 –70,444



1290 Outstanding, end of year 516,259 469,625 399,181

The Federal National Mortgage Association (Fannie Mae) is a Government-sponsored enterprise (GSE) in the housing finance market. As a housing GSE, Fannie Mae is a federally chartered, privately owned company with a public mission to provide stability in and to increase the liquidity of the residential mortgage market and to help increase the availability of mortgage credit to low- and moderate-income families and in underserved areas. Fannie Mae engages primarily in two forms of business: guaranteeing residential mortgage securities and investing in portfolios of residential mortgages.

Fannie Mae was established in 1938 to assist private markets in providing a steady supply of funds for housing. Fannie Mae was originally a subsidiary of the Reconstruction Finance Corporation and was permitted to purchase only loans insured by the Federal Housing Administration (FHA). In 1954, Fannie Mae was restructured as a mixed ownership (part government, part private) corporation. Legislation directed the sale of the Government's remaining interest in Fannie Mae in 1968 and completed the transformation to private shareholder ownership in 1970.

The Housing and Economic Recovery Act (HERA) of 2008 strengthened housing GSE regulation by creating the Federal Housing Finance Agency (FHFA), a new independent regulator, and providing temporary authority for the U.S. Department of the Treasury to purchase obligations of the housing GSEs. On September 6, 2008, FHFA put Fannie Mae under Federal conservatorship to avoid a possible collapse of the housing finance market and further risks to the broader financial market. On the following day, the U.S. Department of the Treasury entered into a Senior Preferred Stock Purchase Agreement (PSPA) with Fannie Mae to make investments of up to $100 billion in senior preferred stock as required to maintain positive equity. In May 2009, Treasury increased the funding commitments for the PSPA to $200 billion and in December 2009, Treasury modified the funding commitments in the PSPA to the greater of $200 billion or $200 billion plus cumulative net worth deficits experienced during 2010–2012, less any surplus remaining as of December 31, 2012. Based on the financial results reported by Fannie Mae as of December 31, 2012 and under the terms of the PSPA, the cumulative funding commitment cap for Fannie Mae was set at $233.7 billion. As of December 31, 2013, Fannie Mae had received $116.1 billion under the PSPA and made a total of $113.9 billion in dividend payments to Treasury on the senior preferred stock. The Budget continues to reflect the GSEs as non-budgetary entities, though their status will continue to be reviewed. All of the current federal assistance being provided to Fannie Mae, including the PSPA, is shown on-budget. For additional discussion and analyses of Fannie Mae, please see the Analytical Perspectives volume of the Budget documents.

Balance Sheet (in millions of dollars)


Identification code 39–4986–0–4–371 2012 actual 2013 actual

ASSETS:
Federal assets: Investments in US securities:
1102 Treasury securities, par 19,897 16,396
1201 Non-Federal assets: Investments in other securities, net 45,500 56,764
Net value of assets related to direct loans receivable and acquired defaulted guaranteed loans receivable:
1601 Mortgage Loans and Mortgage Related Securities 389,519 310,096
1601 Mortgage Loans and Mortgage Related Securities - Consolidated Trusts 2,642,354 2,744,084


1604 Direct loans and interest receivable, net 3,031,873 3,054,180
1606 Acquired Property, net 10,278 11,380


1699 Value of assets related to direct loans 3,042,151 3,065,560
Other Federal assets:
1801 Cash and other monetary assets 118,702 94,246
1901 Other assets 48,256


1999 Total assets 3,226,250 3,281,222
LIABILITIES:
Non-Federal liabilities:
2202 Interest payable 11,732 10,769
2203 Debt 652,971 565,110
2203 Debt - Consolidated Trusts 2,543,739 2,675,011
2207 Other 15,396 18,715


2999 Total liabilities 3,223,838 3,269,605
NET POSITION:
3300 Senior Preferred Stock 117,149 117,149
3300 Private Equity –114,790 –105,581
3300 Noncontrolling Interest 53 49


3999 Total net position 2,412 11,617


4999 Total liabilities and net position 3,226,250 3,281,222

Mortgage-backed Securities

Status of Direct Loans (in millions of dollars)


Identification code 39–4987–0–4–371 2013 actual 2014 est. 2015 est.

Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year 2,694,799 2,752,813 2,752,813
1231 Disbursements: Direct loan disbursements 876,999
1251 Repayments: Repayments and prepayments –818,985



1290 Outstanding, end of year 2,752,813 2,752,813 2,752,813

Prior to January 1, 2010 the mortgages in the pools of loans supporting the mortgage-backed securities guaranteed by Fannie Mae were considered to be owned by the holders of these securities according to the accounting standards for private corporations. Consequently, on the books of Fannie Mae, these mortgages were not considered assets and the securities outstanding were not considered liabilities. New accounting standards implemented on January 1, 2010 require consolidation of many, but not all, of these securities in Fannie Mae's financial statements. For the purposes of this document they are presented as direct loans for mortgage-backed securities. "Disbursements" and "Repayments" are budgetary terms. These items are reported by Fannie Mae as "Issuances" and "Liquidations" respectively.

Federal Home Loan Mortgage Corporation

Federal Funds

Portfolio Programs

Status of Direct Loans (in millions of dollars)


Identification code 39–4988–0–4–371 2013 actual 2014 est. 2015 est.

Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year 567,966 497,814 469,625
1251 Repayments: Repayments and prepayments –70,152 –28,189 –70,444



1290 Outstanding, end of year 497,814 469,625 399,181

The Federal Home Loan Mortgage Corporation (Freddie Mac) is a Government-sponsored enterprise (GSE) in the housing finance market. As a housing GSE, Freddie Mac is a federally chartered, shareholder-owned, private company with a public mission to provide stability in and increase the liquidity of the residential mortgage market, and to help increase the availability of mortgage credit to low- and moderate-income families and in underserved areas. Freddie Mac engages primarily in two forms of business: guaranteeing residential mortgage securities and investing in portfolios of residential mortgages.

Freddie Mac was established in 1970 under the Emergency Home Finance Act. The Congress chartered Freddie Mac to provide mortgage lenders with an organized national secondary market enabling them to manage their conventional mortgage portfolio more effectively and gain indirect access to a ready source of additional funds to meet new demands for mortgages. Freddie Mac serves as a conduit facilitating the flow of investment dollars from the capital markets to mortgage lenders, and ultimately, to homebuyers.

The Housing and Economic Recovery Act (HERA) of 2008 strengthened housing GSE regulation by creating the Federal Housing Finance Agency (FHFA), a new independent regulator, and provided temporary authority for the U.S. Department of the Treasury to purchase obligations of the housing GSEs. On September 6, 2008, FHFA put Freddie Mac under Federal conservatorship to avoid a possible collapse of the housing finance market and further risks to the broader financial market. On the following day, the U.S. Department of the Treasury entered into a Senior Preferred Stock Purchase Agreement (PSPA) with Freddie Mac to make investments of up to $100 billion in senior preferred stock as required to maintain positive equity. In May 2009, Treasury increased the funding commitments for the PSPA to $200 billion and in December 2009, Treasury modified the funding commitments in the PSPA to the greater of $200 billion or $200 billion plus cumulative net worth deficits experienced during 2010–2012, less any surplus remaining as of December 31, 2012. Based on the financial results reported by Fannie Mae as of December 31, 2012 and under the terms of the PSPA, the cumulative funding commitment cap for Freddie Mac was set at $211.8 billion. As of December 31, 2012, Freddie Mac had received $71.3 billion under the PSPA and made a total of $71.3 billion in dividend payments to Treasury on the senior preferred stock. The Budget continues to reflect the GSEs as non-budgetary entities, though their status will continue to be reviewed. All of the current federal assistance being provided to Freddie Mac, including the PSPA, is shown on-budget. For additional discussion and analyses of Freddie Mac, please see the Analytical Perspectives volume of the Budget documents.

Balance Sheet (in millions of dollars)


Identification code 39–4988–0–4–371 2012 actual 2013 actual

ASSETS:
Federal assets: Investments in US securities:
1102 Treasury securities, par 21,554 31,641
1201 Non-Federal assets: Investments in other securities, net 47,660 41,023
Net value of assets related to direct loans receivable and acquired defaulted guaranteed loans receivable:
1601 Mortgage Loans and Mortgage Related Securities 399,450 324,228
1601 Mortgage Loans and Mortgage Related Securities - Consolidated Trusts 1,505,576 1,526,070


1604 Direct loans and interest receivable, net 1,905,026 1,850,298
1606 Acquired property, net 4,502 4,368


1699 Value of assets related to direct loans 1,909,528 1,854,666
Other Federal assets:
1801 Cash and other monetary assets 36,210 30,525
1901 Other assets 1,551 23,930


1999 Total assets 2,016,503 1,981,785
LIABILITIES:
Non-Federal liabilities:
2202 Interest payable 7,528 6,504
2203 Debt 565,036 515,668
2203 Debt - Consolidated Trusts 1,432,632 1,419,909
2207 Other 6,400 6,268


2999 Total liabilities 2,011,596 1,948,349
NET POSITION:
3300 Senior Preferred Stock 72,336 72,336
3300 Private Equity –67,429 –38,900


3999 Total net position 4,907 33,436


4999 Total liabilities and net position 2,016,503 1,981,785

Mortgage-backed Securities

Status of Direct Loans (in millions of dollars)


Identification code 39–4989–0–4–371 2013 actual 2014 est. 2015 est.

Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year 1,591,666 1,612,858 1,612,858
1231 Disbursements: Direct loan disbursements 523,548
1251 Repayments: Repayments and prepayments –502,356



1290 Outstanding, end of year 1,612,858 1,612,858 1,612,858

Prior to January 1, 2010 the mortgages in the pools of loans supporting the mortgage-backed securities guaranteed by Freddie Mac were considered to be owned by the holders of these securities according to the accounting standards for private corporations. Consequently, on the books of Freddie Mac, these mortgages were not considered assets and the securities outstanding were not considered liabilities. New accounting standards implemented on January 1, 2010 require consolidation of many, but not all, of these securities in Freddie Mac's financial statements. For the purposes of this document, they are presented as direct loans for mortgage-backed securities. "Disbursements'' and "Repayments'' are budgetary terms. These items are reported by Freddie Mac as "Issuances" and "Liquidations" respectively.

Federal Home Loan Bank System

Federal Funds

Federal Home Loan Banks

Status of Direct Loans (in millions of dollars)


Identification code 39–4990–0–4–371 2013 actual 2014 est. 2015 est.

Position with respect to appropriations act limitation on obligations:
1131 Direct loan obligations 3,257,971 2,654,585 2,654,585



1150 Total direct loan obligations 3,257,971 2,654,585 2,654,585

Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year 463,076 510,383 510,383
1231 Disbursements: Direct loan disbursements 3,257,971 3,257,971 3,257,971
1251 Repayments: Repayments and prepayments –3,204,149 –3,257,971 –3,257,971
1264 Write-offs for default: Other adjustments, net (+ or -) –6,515



1290 Outstanding, end of year 510,383 510,383 510,383

The Federal Home Loan Bank System is a Government-sponsored enterprise (GSE) in the housing finance market. The Federal Home Loan Banks were chartered by the Federal Home Loan Bank Board under the authority of the Federal Home Loan Bank Act of 1932 (Act). The 12 Federal Home Loan Banks (FHLBanks) are under the supervision of the Federal Housing Finance Agency (FHFA), established by the Congress in 2008. The common mission of FHLBanks is to facilitate the extension of credit through their members. To accomplish this mission, FHLBanks make loans, called "advances", and provide other credit products and services to their over 7,500 member commercial banks, savings associations, insurance companies, and credit unions. Advances and letters of credit must be fully secured by eligible collateral, and long-term advances may be made only for the purpose of providing funds for residential housing finance. However, "community financial institutions'' may also use long-term advances to finance small businesses, small farms, and small agribusinesses. Additionally, specialized advance programs provide funds for community reinvestment and affordable housing programs. All regulated financial depositories, certified community development financial institutions, and insurance companies engaged in residential housing finance are eligible for membership. Each FHLBank operates in a geographic district and together FHLBanks cover all of the United States, as well as the District of Columbia, Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Northern Mariana Islands. The principal source of funds for the lending operation is the sale of consolidated obligations to the public. The consolidated obligations are not guaranteed by the U.S. Government as to principal or interest. Other sources of lendable funds include members' deposits and capital. Funds not immediately needed for advances to members are invested. The capital stock of the Federal Home Loan Banks is owned entirely by the members. Initially the U.S. Government purchased stock of the banks in the amount of $125 million. The banks had repurchased the Government's investment in full by mid-1951. The Act, as amended in 1989, requires each FHLBank to operate an Affordable Housing Program (AHP). Each FHLBank provides subsidies in the form of direct grants or below-market rate advances for members that use the funds for qualifying affordable housing projects. Each of the FHLBanks must set aside annually 10 percent of its previous year's net earnings, subject to an aggregate minimum of $100 million, for the AHP. The Act, as amended in 1999, also required that FHLBanks contribute 20 percent of net earnings annually to assist in the payment of interest on bonds issued by the Resolution Funding Corporation until such time as the total payments are equivalent to a $300 million annual annuity with a final maturity date of April 15, 2030. The FHBLs fulfilled this obligation on August 5, 2011. A rule issued on June 23, 2004 required each FHLBank to register a class of its stock with the Securities and Exchange Commission. All of the Federal Home Loan Banks complied by 2006. For additional discussion and analyses of the FHLBanks, please see the Analytical Perspectives volume of the Budget.

Balance Sheet (in millions of dollars)


Identification code 39–4990–0–4–371 2012 actual 2013 actual

ASSETS:
Federal assets: Investments in US securities:
1102 Treasury securities, par 2,169 1,038
Non-Federal assets:
1201 Investments in other securities, net 275,025 208,564
1206 Accounts receivable 1,454 1,144
1401 Net value of assets related to direct loans receivable: Direct loans receivable, gross 462,939 510,383
Other Federal assets:
1801 Cash and other monetary assets 4,040 34,093
1803 Property, plant and equipment, net 202 220
1901 Other assets 3,153 34,006


1999 Total assets 748,982 789,448
LIABILITIES:
2101 Federal liabilities: REFCORP and Affordable Housing Program 743 772
Non-Federal liabilities:
2202 Interest payable 1,864 1,625
2203 Debt 679,710 722,162
2207 Deposit funds and other borrowing 12,579 11,278
2207 Other 12,566 10,466


2999 Total liabilities 707,462 746,303
NET POSITION:
3100 Invested capital 41,520 43,145


4999 Total liabilities and net position 748,982 789,448

Farm Credit System

The Farm Credit System (System) is a Government-sponsored enterprise that provides privately financed credit to agricultural and rural communities. The major functional entities of the System are (1) the Agricultural Credit Bank (ACB); (2) the Farm Credit Banks (FCBs); and (3) the direct-lender associations. Farmer Mac, which is also an institution of the System, is discussed separately below. The history and specific functions of the bank entities are discussed after the presentation of financial schedules for each bank entity. As part of the System, these entities are regulated and examined by the Farm Credit Administration (FCA), an independent Federal agency. The administrative costs of FCA are financed by assessments of System institutions, including Farmer Mac. System banks finance loans primarily from sales of bonds to the public and their own capital funds. The System bonds issued by the banks are not guaranteed by the U.S. Government as to either principal or interest. The bonds are backed by an insurance fund, administered by the Farm Credit System Insurance Corporation (FCSIC), an independent Federal agency that collects insurance premiums from member banks to pay its administrative expenses and fund insurance reserves. All of the banks' current operating expenses are paid from their own income and do not require budgetary resources from the Federal Government.

Federal Funds

Agricultural Credit Bank

Status of Direct Loans (in millions of dollars)


Identification code 39–4991–0–4–351 2013 actual 2014 est. 2015 est.

Position with respect to appropriations act limitation on obligations:
1131 Direct loan obligations 248,974 256,392 265,366



1150 Total direct loan obligations 248,974 256,392 265,366

Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year 69,945 70,377 74,388
1231 Disbursements: Direct loan disbursements 248,925 256,393 265,366
1251 Repayments: Repayments and prepayments –248,498 –252,345 –263,942
Write-offs for default:
1263 Direct loans –37 –50
1264 Other adjustments, net (+ or -) 5



1290 Outstanding, end of year 70,377 74,388 75,762

CoBank, ACB, which is headquartered outside Denver, Colorado, serves eligible cooperatives nationwide and provides funding to Agricultural Credit Associations (ACAs) and Federal Land Credit Associations (FLCAs) in its chartered district. CoBank, ACB, is the only Agricultural Credit Bank (ACB) in the Farm Credit System. The ACB operates under statutory authority that combines the authorities of a Farm Credit Bank (FCB) and a Bank for Cooperatives (BC). In exercising its FCB authority, CoBank's charter limits its lending to 27 ACAs and two FLCAs located in the northeast, central, and western regions of the country. As an entity lending to cooperatives, CoBank is chartered to provide credit and related services nationwide to eligible cooperatives primarily engaged in farm supply, grain, marketing, and processing (including sugar, dairy, and ethanol). CoBank also makes loans to rural utilities, including telecommunications companies, and it provides international loans for the financing of agricultural exports.



2012 act. 2013 act. 2014 est. 2015 est.
Beginning balance of net worth 4,855,255 6,361,670 6,609,288 6,970,114
Capital stock and participations issued 5,326 627,023 3,066 200,604




Capital stock and participations retired 34,124 594,864 32,900 168,950
Net income 844,422 782,279 784,863 792,172
Cash/Dividends/Patronage Distributions –358,491 –19,738 –407,200 –420,108
Other, net 1,049,282 –547,082 12,997 –17,322




Ending balance of net worth 6,361,670 6,609,288 6,970,114 7,356,510



2012 act. 2013 act. 2014 est. 2015 est.
Beginning balance of outstanding system obligations 52,767,035 79,079,791 82,111,600 84,871,162




Consolidated systemwide and other bank bonds issued 29,144,296 24,071,306 24,793,445 25,661,216
Consolidated systemwide and other bank bonds retired 26,020,538 24,497,790 22,435,883 23,149,652
Consolidated systemwide notes, net –865,056 3,624,102 500,000 500,000
Other (Net) 24,054,054 –165,809 –98,000 –68,500




Ending balance of outstanding system obligations 79,079,791 82,111,600 84,871,162 87,814,226

Balance Sheet (in millions of dollars)


Identification code 39–4991–0–4–351 2012 actual 2013 actual

ASSETS:
Non-Federal assets:
1201 Cash and investment securities 18,835 22,727
1206 Accrued interest receivable on loans 395 367
Net value of assets related to direct loans receivable and acquired defaulted guaranteed loans receivable:
1601 Direct loans, gross 69,945 70,377
1603 Allowance for estimated uncollectible loans and interest (-) –375 –450


1699 Value of assets related to direct loans 69,570 69,927
1803 Other Federal assets: Property, plant and equipment, net 1,456 1,106


1999 Total assets 90,256 94,127
LIABILITIES:
2104 Federal liabilities: Resources payable 1,133 1,068
Non-Federal liabilities:
2201 Consolidated systemwide and other bank bonds 79,080 82,111
2201 Notes payable and other interest-bearing liabilities 3,340 4,033
2202 Accrued interest payable 341 306


2999 Total liabilities 83,894 87,518
NET POSITION:
3300 Cumulative results of operations 6,362 6,609


4999 Total liabilities and net position 90,256 94,127

Farm Credit Banks

Status of Direct Loans (in millions of dollars)


Identification code 39–4992–0–4–371 2013 actual 2014 est. 2015 est.

Position with respect to appropriations act limitation on obligations:
1131 Direct loan obligations 183,518 192,750 201,791



1150 Total direct loan obligations 183,518 192,750 201,791

Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year 97,404 103,071 108,005
1231 Disbursements: Direct loan disbursements 183,511 192,087 202,992
1251 Repayments: Repayments and prepayments –177,821 –187,122 –195,588
1263 Write-offs for default: Direct loans –23 –31 –26



1290 Outstanding, end of year 103,071 108,005 115,383

The Agricultural Credit Act of 1987 (1987 Act) required the Federal Land Banks (FLBs) and Federal Intermediate Credit Banks (FICBs) to merge into a Farm Credit Bank (FCB) in each of the 12 Farm Credit districts. FCBs operate under statutory authority that combines the prior authorities of an FLB and of an FICB. No merger occurred in the Jackson district in 1988 because the FLB of Jackson was in receivership. Pursuant to section 410(e) of the 1987 Act, as amended by the Farm Credit Banks Safety and Soundness Act of 1992, FICB of Jackson merged with FCB of Columbia on October 1, 1993. Mergers and consolidations of FCBs across district lines, which began in 1992, have continued to date. As a result of this restructuring activity, three FCBs, headquartered in the following cities, remain as of October 1, 2013: AgFirst Farm Credit Bank, Columbia, South Carolina; AgriBank, FCB, St. Paul, Minnesota; and FCB of Texas, Austin, Texas.

FCBs serve as discount banks and, as of October 1, 2013, provided funds to one Federal Land Credit Association (FLCA) and 52 Agricultural Credit Associations (ACAs). These direct-lender associations, in turn, primarily make short- and intermediate-term production loans and long-term real estate loans to eligible farmers and ranchers, farm-related businesses, and rural homeowners. FCBs can also lend to other financing institutions, including commercial banks, as authorized by the Farm Credit Act of 1971, as amended.

All the capital stock of FICBs, from their organization in 1923 to December 31, 1956, was held by the U.S. Government. The Farm Credit Act of 1956 provided a long-range plan for the eventual ownership of the FICBs by the production credit associations and the gradual retirement of the Government's investment in the banks. This retirement was accomplished in full on December 31, 1968. The last of the Government capital that had been invested in FLBs was repaid in 1947.

Statement of Changes in Net Worth (in thousands of dollars)




2012 act. 2013 act. 2014 est. 2015 est.



Beginning balance of net worth 8,594,783 7,940,682 8,615,024 8,860,009
Capital stock and participations issued 173,947 462,635 180,104 232,505




Capital stock and participations retired 263,410 354,071 298,982 115,407
Surplus Retired –307 –6 0 0
Net income 1,128,466 1,195,769 1,018,146 1,010,835
Cash/Dividends/Patronage Distributions –557,716 –540,706 –596,649 –527,610
Other, net –1,250,551 –89,291 –57,634 7,964




Ending balance of net worth 7,940,682 8,615,024 8,860,009 9,468,296

Financing Activities (in thousands of dollars)




2012 act. 2013 act. 2014 est. 2015 est.



Beginning balance of outstanding system obligations 129,243,811 112,291,707 118,125,324 125,304,036




Consolidated systemwide and other bank bonds issued 604,654,487 283,823,221 280,270,571 286,994,292
Consolidated systemwide and other bank bonds retired 596,798,388 278,179,850 273,275,604 279,229,315
Consolidated systemwide notes, net –1,849,535 190,246 183,745 913,137
Other (Net) –22,958,668 0 0 0




Ending balance of outstanding system obligations 112,291,707 118,125,324 125,304,036 133,982,150

Balance Sheet (in millions of dollars)


Identification code 39–4992–0–4–371 2012 actual 2013 actual

ASSETS:
Non-Federal assets:
1201 Cash and investment securities 23,990 24,994
1206 Accrued Interest Receivable 537 486
Net value of assets related to direct loans receivable and acquired defaulted guaranteed loans receivable:
1601 Direct loans, gross 97,404 103,071
1603 Allowance for estimated uncollectible loans and interest (-) –72 –53


1699 Value of assets related to direct loans 97,332 103,018
1803 Other Federal assets: Property, plant and equipment, net 594 569


1999 Total assets 122,453 129,067
LIABILITIES:
2104 Federal liabilities: Resources payable 321 315
Non-Federal liabilities:
2201 Consolidated systemwide and other bank bonds 112,292 118,125
2201 Notes payable and other interest-bearing liabilities 1,587 1,720
2202 Accrued interest payable 312 292


2999 Total liabilities 114,512 120,452
NET POSITION:
3300 Cumulative results of operations 7,941 8,615


4999 Total liabilities and net position 122,453 129,067

Federal Agricultural Mortgage Corporation

Status of Guaranteed Loans (in millions of dollars)


Identification code 39–4993–0–4–351 2013 actual 2014 est. 2015 est.

Position with respect to appropriations act limitation on commitments:
2131 Guaranteed loan commitments 3,224



2150 Total guaranteed loan commitments 3,224

Cumulative balance of guaranteed loans outstanding:
2210 Outstanding, start of year 12,468 13,786 13,786
2231 Disbursements of new guaranteed loans 3,224
2251 Repayments and prepayments –1,906



2290 Outstanding, end of year 13,786 13,786 13,786

Memorandum:
2299 Guaranteed amount of guaranteed loans outstanding, end of year 1,677

Farmer Mac

Farmer Mac is authorized under the Farm Credit Act of 1971, as amended by the Agricultural Credit Act of 1987 (Act), to create a secondary market for agricultural real estate and rural home mortgages. The Farmer Mac title of the Act was amended by the 1990 farm bill to authorize Farmer Mac to purchase, pool, and securitize the guaranteed portions of farmer program, rural business, and community development loans guaranteed by the U.S. Department of Agriculture (USDA). The Farmer Mac title was amended in 1991 to clarify Farmer Mac's authority to issue debt obligations, provide for the establishment of minimum capital standards, establish the Office of Secondary Market Oversight at the Farm Credit Administration (FCA), and expand the Agency's rulemaking authority. The Farm Credit System Reform Act of 1996 (1996 Act) amended the Farmer Mac title to allow Farmer Mac to purchase loans directly from lenders and to issue and guarantee mortgage-backed securities without requiring that a minimum cash reserve or subordinated (first loss) interest be maintained by poolers as had been required under its original authority. The 1996 Act expanded FCA's regulatory authority to include provisions for establishing a conservatorship or receivership, if necessary, and provided for increased core capital requirements at Farmer Mac phased in over three years. Most recently, the 2008 Farm Bill, the Food, Conservation and Energy Act of 2008 amended the Farmer Mac title to authorize the financing of rural electric and telephone cooperatives.

Farmer Mac operates through several programs: the "Farm & Ranch" program involves mortgage loans secured by first liens on agricultural real estate, or rural housing (qualified loans); the "USDA guarantees" program involves the guaranteed portions of certain USDA-guaranteed loans; and the "Rural Utilities" program involves rural electric and telephone loans. Farmer Mac operates by (1) purchasing, or committing to purchase, newly originated or existing qualified loans or guaranteed portions from lenders; (2) purchasing or guaranteeing "AgVantage'' bonds backed by qualified loans; and (3) exchanging qualified loans or guaranteed portions for guaranteed securities. Loans purchased by Farmer Mac may be aggregated into pools that back Farmer Mac guaranteed securities, which are held by Farmer Mac or sold into the capital markets.

Farmer Mac is governed by a 15-member Board of Directors. Ten board members are elected by stockholders, including five by stockholders that are Farm Credit System (FCS) institutions and five by stockholders that are non-FCS financial services firms. Five are appointed by the President, subject to Senate confirmation.

Financing

Financial support and funding for Farmer Mac's operations come from several sources: sale of common and preferred stock, issuance of debt obligations, and income. Under procedures specified in the Act, Farmer Mac may issue obligations to the U.S. Treasury in a cumulative amount not to exceed $1.5 billion to fulfill Farmer Mac's guarantee obligations.

As of September 30, 2013, Farmer Mac's core capital exceeded statutory requirements. Additionally, Farmer Mac's regulatory capital (core capital plus the allowance for loan losses) exceeded the amount of required regulatory capital as determined by the risk-based capital rule.

Guarantees

Farmer Mac provides a guarantee of timely payment of principal and interest on securities backed by qualified loans or pools of qualified loans. These securities are not guaranteed by the United States and are not "Government securities."

Farmer Mac is subject to reporting requirements under securities laws, and its guaranteed mortgage-backed securities are subject to registration with the Securities and Exchange Commission under the 1933 and 1934 Securities Acts.

Regulation

Farmer Mac is federally regulated by FCA, acting through its Office of Secondary Market Oversight (OSMO). FCA is responsible for the supervision of, examination of, and rulemaking for Farmer Mac.

Balance Sheet (in millions of dollars)


Identification code 39–4993–0–4–351 2012 actual 2013 actual

ASSETS:
Non-Federal assets:
1201 Investment in securities 2,636 2,503
1206 Receivables, net 128 92
Net value of assets related to direct loans receivable:
1401 Direct loans receivable, gross 8,798 9,767
1402 Interest receivable 70 71


1499 Net present value of assets related to direct loans 8,868 9,838
1801 Other Federal assets: Cash and other monetary assets 870 652


1999 Total assets 12,502 13,085
LIABILITIES:
Non-Federal liabilities:
2201 Accounts payable 184 159
2202 Interest payable 35 37
2203 Debt 11,640 12,237
2204 Liabilities for loan guarantees 43 47


2999 Total liabilities 11,902 12,480
NET POSITION:
3300 Invested capital 600 605


4999 Total liabilities and net position 12,502 13,085