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, 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 financing 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 915–4986–0–4–371 2021 actual 2022 est. 2023 est.

Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year 172,108 110,910 110,910
1251 Repayments: Net repayments and prepayments –61,198



1290 Outstanding, end of year 110,910 110,910 110,910

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, 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. 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 of 2008 reformed 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 placed Fannie Mae under Federal conservatorship in response to the GSEs' declining capital adequacy and to support the safety and soundness of the GSEs. 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, 2021, Fannie Mae had received $119.8 billion under the PSPA, and had made a total of $181.4 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 of Fannie Mae, please see the Analytical Perspectives volume of the Budget documents.

Balance Sheet (in millions of dollars)


Identification code 915–4986–0–4–371 2020 actual 2021 actual

ASSETS:
Federal assets:
Investments in U.S. securities:
1102 Treasury securities, par 135,972 92,192
1201 Non-Federal assets: Investments in non-Federal securities, net 12,774 27,630
Net value of assets related to direct loans receivable and acquired defaulted guaranteed loans receivable:
1601 Mortgage Loans and Mortgage Related Securities 115,986 77,974
1601 Mortgage Loans and Mortgage Related Securities - Consolidated Trusts 3,439,678 3,831,578


1604 Direct loans and interest receivable, net 3,555,664 3,909,552
1606 Acquired Property, net 1,462 1,261


1699 Value of assets related to direct loans 3,557,126 3,910,813
Other Federal assets:
1801 Cash and other monetary assets 135,695 155,522
1901 Other assets 23,036 23,052


1999 Total assets 3,864,603 4,209,209
LIABILITIES:
Non-Federal liabilities:
2202 Interest payable 9,982 9,299
2203 Debt 289,423 234,843
2203 Debt - Consolidated Trusts 3,530,381 3,907,626
2207 Other 14,124 15,268


2999 Total liabilities 3,843,910 4,167,036
NET POSITION:
3300 Senior Preferred Stock 120,836 120,836
3300 Private Equity –100,143 –78,663
3300 Noncontrolling Interest


3999 Total net position 20,693 42,173


4999 Total liabilities and net position 3,864,603 4,209,209

Mortgage-backed Securities

Status of Direct Loans (in millions of dollars)


Identification code 915–4987–0–4–371 2021 actual 2022 est. 2023 est.

Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year 3,481,562 3,831,364 3,831,364
1231 Disbursements: Direct loan disbursements 1,595,052
1251 Repayments: Repayments and prepayments –1,245,250



1290 Outstanding, end of year 3,831,364 3,831,364 3,831,364

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 the Budget 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 913–4988–0–4–371 2021 actual 2022 est. 2023 est.

Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year 198,176 113,773 113,773
1251 Repayments: Repayments and prepayments –84,403



1290 Outstanding, end of year 113,773 113,773 113,773

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 of 2008 reformed 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 placed Freddie Mac under Federal conservatorship in response to the GSEs' declining capital adequacy and to support the safety and soundness of the GSEs. 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 Freddie Mac 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, 2021, Freddie Mac had received $71.6 billion under the PSPA, and had made a total of $119.7 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 of Freddie Mac, please see the Analytical Perspectives volume of the Budget documents.

Balance Sheet (in millions of dollars)


Identification code 913–4988–0–4–371 2020 actual 2021 actual

ASSETS:
Federal assets:
Investments in U.S. securities:
1102 Treasury securities, par 28,497 30,513
1201 Non-Federal assets: Investments in non-Federal securities, net 99,252 89,512
Net value of assets related to direct loans receivable and acquired defaulted guaranteed loans receivable:
1601 Mortgage Loans and Mortgage Related Securities 147,937 83,380
1601 Mortgage Loans and Mortgage Related Securities - Consolidated Trusts 2,115,509 2,671,954


1604 Direct loans and interest receivable, net 2,263,446 2,755,334
1606 Acquired property, net


1699 Value of assets related to direct loans 2,263,446 2,755,334
Other Federal assets:
1801 Cash and other monetary assets 56,990 56,526
1901 Other assets 5,886 6,099


1999 Total assets 2,454,071 2,937,984
LIABILITIES:
Non-Federal liabilities:
2202 Interest payable 6,020 6,049
2203 Debt 284,896 193,896
2203 Debt - Consolidated Trusts 2,138,420 2,701,530
2207 Other 10,844 11,198


2999 Total liabilities 2,440,180 2,912,673
NET POSITION:
3300 Senior Preferred Stock 72,648 72,648
3300 Private Equity –58,757 –47,337


3999 Total net position 13,891 25,311


4999 Total liabilities and net position 2,454,071 2,937,984

Mortgage-backed Securities

Status of Direct Loans (in millions of dollars)


Identification code 914–4989–0–4–371 2021 actual 2022 est. 2023 est.

Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year 2,459,232 3,025,320 3,025,320
1231 Disbursements: Direct loan disbursements 1,445,268
1251 Repayments: Repayments and prepayments –879,180



1290 Outstanding, end of year 3,025,320 3,025,320 3,025,320

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 the Budget, 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 913–4990–0–4–371 2021 actual 2022 est. 2023 est.

Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year 547,118 406,234 406,234
1231 Disbursements: Direct loan disbursements 3,037,651
1251 Repayments: Repayments and prepayments –3,172,665
1264 Other adjustments, net (+ or -) –5,870



1290 Outstanding, end of year 406,234 406,234 406,234

The Federal Home Loan Bank System is a Government-sponsored enterprise (GSE) in the housing finance market. The Federal Home Loan Banks (FHLBanks) were chartered by the Federal Home Loan Bank Board under the authority of the Federal Home Loan Bank Act of 1932 (Act). The 11 Federal Home Loan Banks 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 nearly 6,600 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. 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, and must meet other requirements in the Act to obtain membership. Each FHLBank operates in a geographic district and together FHLBanks cover all of the United States, including 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. For additional discussion of the FHLBanks, please see the Analytical Perspectives volume of the Budget.

Balance Sheet (in millions of dollars)


Identification code 913–4990–0–4–371 2020 actual 2021 actual

ASSETS:
Federal assets:
Investments in U.S. securities:
1102 Treasury securities, par 62,060 40,574
Non-Federal assets:
1201 Investments in non-Federal securities, net 270,730 254,233
1206 Accounts receivable 1,271 921
1401 Net value of assets related to direct loans receivable: Direct loans receivable, gross 547,070 406,211
Other Federal assets:
1801 Cash and other monetary assets 9,988 6,805
1803 Property, plant and equipment, net
1901 Other assets 3,345 3,470


1999 Total assets 894,464 712,214
LIABILITIES:
2101 Federal liabilities: REFCORP and Affordable Housing Program 1,064 933
Non-Federal liabilities:
2202 Interest payable 928 776
2203 Debt 821,933 641,954
2207 Deposit funds and other borrowing 14,952 4,190
2207 Other 4,116 15,563


2999 Total liabilities 842,993 663,416
NET POSITION:
3100 Invested capital 51,471 48,798


4999 Total liabilities and net position 894,464 712,214

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. The Federal Agricultural Mortgage Corporation (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.

System entities are regulated and examined by the Farm Credit Administration (FCA), an independent Federal agency. The administrative costs of FCA are financed by assessments on 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 Government-controlled corporation that collects insurance premiums from member banks to fund insurance reserves. All of FCSIC's operating expenses are also paid from the insurance premiums it receives from the System banks; as a result, the FCSIC does not require budgetary resources from the Federal Government.

Federal Funds

Agricultural Credit Bank

Status of Direct Loans (in millions of dollars)


Identification code 912–4991–0–4–351 2021 actual 2022 est. 2023 est.

Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year 111,985 119,056 126,405
1231 Disbursements: Direct loan disbursements 531,680 558,533 586,743
1251 Repayments: Repayments and prepayments –524,613 –551,139 –580,315
1263 Write-offs for default: Direct loans –45 –43
1264 Other adjustments, net (+ or -) 4



1290 Outstanding, end of year 119,056 126,405 132,790

CoBank, Agricultural Credit Bank, which is headquartered near Denver, Colorado, provides funding to eligible cooperatives nationwide and agricultural credit associations (ACAs) in its chartered district. CoBank is the only ACB in the System. An ACB operates under statutory authority that combines the authorities of an FCB and a bank for cooperatives (BC). CoBank is the only System bank with the authorities of a BC. In exercising its FCB authority, CoBank's charter limits its lending to 20 ACAs located in the northeast, central, and western regions of the country. And, in exercising its BC authority, 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.

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


2020 act. 2021 act. 2022 est. 2023 est.

Beginning balance of net worth 10,447,308 11,679,369 11,989,797 12,703,629




Capital stock and participations issued 121,516 203,577 750,000 35,000
Capital stock and participations retired 34,792 37,474 401,907 645,652
Net income 1,194,308 1,395,511 1,229,315 1,303,053
Cash/Dividends/Patronage Distributions –607,179 –791,028 –735,817 –751,140
Other, net 558,208 –460,158 –127,759 –137,009




Ending balance of net worth 11,679,369 11,989,797 12,703,629 12,507,881

Financing Activities (in thousands of dollars)


2020 act. 2021 act. 2022 est. 2023 est.

Beginning balance of outstanding system obligations 122,493,375 132,426,345 138,073,631 148,925,971




Consolidated systemwide and other bank bonds issued 78,143,926 70,689,889 74,260,203 78,010,842
Consolidated systemwide and other bank bonds retired 67,723,738 64,124,193 63,401,665 69,165,072
Consolidated systemwide notes, net –471,800 –908,676 0 0
Other (Net) –15,418 –9,734 –6,198 –4,437




Ending balance of outstanding system obligations 132,426,345 138,073,631 148,925,971 157,767,304

Balance Sheet (in millions of dollars)


Identification code 912–4991–0–4–351 2020 actual 2021 actual

ASSETS:
Non-Federal assets:
1201 Cash and investment securities 34,486 34,430
1206 Accrued interest receivable on loans 412 382
Net value of assets related to direct loans receivable and acquired defaulted guaranteed loans receivable:
1601 Direct loans, gross 111,984 119,055
1603 Allowance for estimated uncollectible loans and interest (-) –631 –631


1699 Value of assets related to direct loans 111,353 118,424
1803 Other Federal assets: Property, plant and equipment, net 2,100 1,538


1999 Total assets 148,351 154,774
LIABILITIES:
2104 Federal liabilities: Resources payable to Treasury 2,179 2,401
Non-Federal liabilities:
2201 Consolidated systemwide and other bank bonds 132,426 138,074
2201 Notes payable and other interest-bearing liabilities 1,716 2,008
2202 Accrued interest payable 351 301


2999 Total liabilities 136,672 142,784
NET POSITION:
3300 Cumulative results of operations 11,679 11,990


4999 Total liabilities and net position 148,351 154,774

Farm Credit Banks

Status of Direct Loans (in millions of dollars)


Identification code 912–4992–0–4–371 2021 actual 2022 est. 2023 est.

Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year 153,942 168,327 180,806
1231 Disbursements: Direct loan disbursements 270,509 278,299 288,067
1251 Repayments: Repayments and prepayments –256,124 –265,802 –276,051
1263 Write-offs for default: Direct loans –18 –10



1290 Outstanding, end of year 168,327 180,806 192,812

The Agricultural Credit Act of 1987 (1987 Act) required the federal land banks (FLBs) and federal intermediate credit banks (FICBs) to merge into an 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. 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, 2021: 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, 2021, provided funds to one federal land credit association and 46 agricultural credit associations. 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 (1971 Act).

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)




2020 act. 2021 act. 2022 est. 2023 est.



Beginning balance of net worth 10,559,072 11,405,805 11,843,457 12,286,453




Capital stock and participations issued 947,216 405,252 326,697 713,255
Capital stock and participations retired 446,022 69,968 16,751 305,935
Surplus Retired 118 2,254 1,460 0
Net income 1,347,161 1,449,394 1,347,538 1,302,829
Cash/Dividends/Patronage Distributions –1,138,345 –1,315,316 –1,181,789 –1,103,034
Other, net 136,841 –29,456 –31,239 –216,894




Ending balance of net worth 11,405,805 11,843,457 12,286,453 12,676,675

Financing Activities (in thousands of dollars)




2020 act. 2021 act. 2022 est. 2023 est.



Beginning balance of outstanding system obligations 160,146,949 176,239,909 190,764,160 202,962,898




Consolidated systemwide and other bank bonds issued 293,432,765 267,995,223 236,935,100 231,294,955
Consolidated systemwide and other bank bonds retired 277,598,044 253,607,721 224,749,651 219,647,768
Consolidated systemwide notes, net 0 0 0 0
Other (Net) 258,239 136,749 13,289 –54,809




Ending balance of outstanding system obligations 176,239,909 190,764,160 202,962,898 214,555,276

Balance Sheet (in millions of dollars)


Identification code 912–4992–0–4–371 2020 actual 2021 actual

ASSETS:
Non-Federal assets:
1201 Cash and investment securities 34,631 35,853
1206 Accrued Interest Receivable 686 669
Net value of assets related to direct loans receivable and acquired defaulted guaranteed loans receivable:
1601 Direct loans, gross 153,946 168,327
1603 Allowance for estimated uncollectible loans and interest (-) –69 –71


1699 Value of assets related to direct loans 153,877 168,256
1803 Other Federal assets: Property, plant and equipment, net 1,040 965


1999 Total assets 190,234 205,743
LIABILITIES:
2104 Federal liabilities: Resources payable to Treasury 674 572
Non-Federal liabilities:
2201 Consolidated systemwide and other bank bonds 176,240 190,764
2201 Notes payable and other interest-bearing liabilities 1,545 2,230
2202 Accrued interest payable 369 334


2999 Total liabilities 178,828 193,900
NET POSITION:
3300 Cumulative results of operations 11,406 11,843


4999 Total liabilities and net position 190,234 205,743

Federal Agricultural Mortgage Corporation

Status of Guaranteed Loans (in millions of dollars)


Identification code 912–4993–0–4–351 2021 actual 2022 est. 2023 est.

Cumulative balance of guaranteed loans outstanding:
2210 Outstanding, start of year 21,989 23,119 23,119
2231 Disbursements of new guaranteed loans 6,831
2251 Repayments and prepayments –5,701



2290 Outstanding, end of year 23,119 23,119 23,119

Memorandum:
2299 Guaranteed amount of guaranteed loans outstanding, end of year 2,723

Farmer Mac

Farmer Mac is authorized under the Farm Credit Act of 1971 (as amended by the 1987 Act) to create a secondary market for agricultural real estate and rural home mortgages. The Farmer Mac title of the 1971 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. 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. Most recently, the Agricultural Improvement Act of 2018, increased the acreage exception provided in section 8.8(c)(2) of the Farm Credit Act of 1971 from 1,000 acres to 2,000 acres. The change became effective on June 18, 2020.

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 telecommunications 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 of qualified loans, 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 legislation, 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.

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 considered 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 through FCA's Office of Secondary Market Oversight. FCA is responsible for the supervision of, examination of, and rulemaking for Farmer Mac.

Balance Sheet (in millions of dollars)


Identification code 912–4993–0–4–351 2020 actual 2021 actual

ASSETS:
Non-Federal assets:
1201 Investment in securities 3,577 3,742
1206 Receivables, net 106 73
Net value of assets related to direct loans receivable:
1401 Direct loans receivable, gross 19,252 19,886
1402 Interest receivable 153 144


1499 Net present value of assets related to direct loans 19,405 20,030
1801 Other Federal assets: Cash and other monetary assets 911 899


1999 Total assets 23,999 24,744
LIABILITIES:
Non-Federal liabilities:
2201 Accounts payable 55 68
2202 Interest payable 93 83
2203 Debt 22,882 23,356
2204 Liabilities for loan guarantees 39 40


2999 Total liabilities 23,069 23,547
NET POSITION:
3300 Invested capital 930 1,197


4999 Total liabilities and net position 23,999 24,744