ABA and Farmer Mac: The Alliance that Brings Dividends
The webinar focused on the Alliance between Farmer Mac and ABA Business Solutions. It was titled “ABA and Farmer Mac: The Alliance that Brings Dividends,” the webinar featured representatives of three ABA member banks discussing their experiences using Farmer Mac and the benefits they receive from the Alliance.
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Farmer Mac programs are structured to help banks meet the challenge presented by farm and ranch customers as they cope with their evermore complex financial environment. Through meeting this need, Farmer Mac helps banks solidify their ag leadership roles within their communities while improving their financial performance.
The Alliance between Farmer Mac and ABA's subsidiary, Business Solutions, has been in place since 2005. See ABA-member benefits below.
Programs and Products
Whole Loan Purchase Program: by selling qualified loans and their associated credit and interest-rate risk, you can offer your customers the opportunity to lock in long-term fixed rates on their farmland loans.
Long-Term Standby Purchase Commitment (LTSPC): Farmer Mac's commitment to purchase qualified loans from the bank's portfolio at the point they become 90 days delinquent allows banks to transfer credit risk on those loans to Farmer Mac. Banks can free up capital for other purposes, including funding new growth, by reducing risk weighting on LTSPC loans to 20%.
- AgVantage: Farmer Mac's funding vehicle allowing a bank to access funding at Farmer Mac's advantageous rates using qualified mortgage loans. Borrrowing terms range up to 15 years.
Celebrating 25 Years
Since our beginning 25 years ago, 1,300 ag lenders have trusted Farmer Mac over 56,000 times. Loan by loan, lenders have relied on the secondary market to better serve their customers.
Both the lenders and the farm businesses they serve benefi t from steady access to our competitively priced, long-term fixed rates. Farmer Mac... proud of our past, and confident of what we will bring to future generations.
USDA Guarantee Purchase Program: Farmer Mac's liquidity program for USDA guaranteed loans, with Farmer Mac purchasing the guaranteed portions of these loans, both Farm Service Agency and Rural Development Business and Industry and Community Facility.
Customer Support & Technology
- AgPower® LOS (Loan Origination System): This web-based system facilitates loan submission and communication with underwriters
- Varied, in-depth knowledge resources at www.farmermac.com
- Read the latest Alliance Alert
- Training webinars and teleconferences to enhance the secondary market expertise of your staff
- General as well as customized e-based learning tools
ABA Member Benefits:
ABA Mortgage Resources:
- Mortgage Business Insights A quarterly newsletter with valuable mortgage business information and resources. We hope you enjoy reading it.
- Click here to receive periodic email updates on ABA Mortgage Resources.