Farmer Mac Volume Exceeds $6 Billion
The Federal Agricultural Mortgage Corp., known informally as Farmer Mac, issued a long-term standby purchase commitment on a $479 million pool of agricultural real estate loans recently, bringing Farmer Mac's total portfolio of loans, guarantees and LTSPCs to over $6 billion, a new record for the company.
Farmer Mac's president and CEO, Henry Edelman, said in a news release that the $479 million LTSPC transaction advances the corporation's mission of improving the availability of long-term credit at stable interest rates for America's farmers, ranchers and rural homeowners. The LTSPC transaction with a Farm Credit System institution increases its ability to make additional agricultural real estate loans, he said.
"The transaction is a product of Farmer Mac's ongoing efforts to diversify its marketing focus to include large program transactions that emphasize high asset quality, with greater protection against adverse credit performance and commensurately lower compensation for the assumption of credit risk and administrative costs," he said. (c) 2006 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com http://www.sourcemedia.com