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NEWS RELEASE
April 24, 2008
Contact: Jim Eberle
(202) 663-5477
E-mail: jeberle@aba.com
ABA EXPANDS ALLIANCE WITH FARMER MAC
TO INCLUDE PART-TIME FARM PROGRAM
WASHINGTON, D.C. – The American Bankers Association announced today that it expanded its members-only alliance with the Federal Agricultural Mortgage Corporation (Farmer Mac) to give members an outlet to sell home mortgage loans on rural properties situated on large parcels of land engaged in agricultural production.
ABA has had an exclusive agreement with Farmer Mac since 2005 to provide pricing discounts and streamlined processing for Farmer Mac Full-Time Farm products and AgPower customized loan packaging services.
The amended agreement extends the member advantaged benefits to Farmer Mac's Part-Time Farm product, which offers favorable long-term interest rates and loan amounts up to $3 million on owner-occupied principal residences and second homes.
“This program will give our members a real advantage because it provides an outlet for the sale of qualified mortgages on properties where the land exceeds the value of the improvements," said William Kroll, president, ABA Total Business Solutions. "Banks normally face a challenge finding secondary market buyers willing to purchase these types of loans."
"Up until now, the alliance benefits have been available only for selected Farmer Mac farm and ranch products," said Tom Stenson, Farmer Mac executive vice president and COO. "We're excited about the addition of this alliance benefit for the Part-Time Farm program, which will be the first change in the program since its origin in 2005."
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The American Bankers Association brings together banks of all sizes and charters into one association. ABA works to enhance the competitiveness of the nation's banking industry and strengthen America’s economy and communities. Its members – the majority of which are banks with less than $125 million in assets – represent over 95 percent of the industry’s $12.7 trillion in assets and employ over 2 million men and women.
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