Dictionary of Banking Terms: FARMER MAC
FARMER MAC
nickname for the Federal Agricultural Mortgage Corp., a quasi-government agency created by the Agricultural Credit Act of 1987 to guarantee farm loans up to $2.5 million sold to investors in the secondary market. Farmer Mac, a stock corporation owned by agricultural lenders, operates in much the same fashion as the Government National Mortgage Association (Ginnie Mae), by certifying private loan packagers who assemble pools of loans for resale and guaranteeing timely payment of principal and interest. Unlike Ginnie Mae passthrough securities, Farmer Mac securities are not exempt from SEC registration requirements.
