Federal Agricultural Mortgage Corporation · NYSE:AGM

Federal Agricultural Mortgage — LTSPC webinar April 2012

7 slides from Federal Agricultural Mortgage's conference presentation, April 2012

  1. Slide 1: Purchase Commitments: How Your Bank Can "Participate" Loans with Farmer Mac

    4/11/2012 Purchase Commitments: How Your Bank Can “Participate” Loans with Farmer Mac April 2012 Today from Farmer Mac • Tom Stenson – EVP & COO • Mary Maloney – Director of Marketing [email protected] 800‐879‐3276 Washington, DC 1

  2. Slide 2: Agenda; Products tailored to needs

    4/11/2012 Agenda 1. Farmer Mac I ‐ Products tailored to needs 2. What is a Purchase Commitment? 3. Why use a Purchase Commitment? 4. What loans qualify? 5. What are the fees? 6. Steps to get started Products tailored to needs • Purchase Commitment – Retain loans in portfolio while transferring credi

  3. Slide 3: Distribution by Product Line; What is a Purchase Commitment?

    4/11/2012 Distribution by Product Line • As of 12/31/2011 Farmer Mac had $9.6 billion total exposure in both Farmer Mac I and II. USDA Guaranteed Cash Window 16% 15% PC 30% AgVantage 39% What is a Purchase Commitment? • Farmer Mac commits to purchase defaulted loans (90 days delinquent) at par out o

  4. Slide 4: Purchase Commitment History

    4/11/2012 Purchase Commitment History 6,000 1,400 Millions Volume of Loans # Loans 1,200 5,000 1,000 4,000 800 $ Volume # Loans 3,000 600 2,000 400 1,000 200 ‐ 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Commitment Year Life‐to‐Date Totals • Total loans in the program = 2

  5. Slide 5: Why use a Purchase Commitment? What loans qualify?

    4/11/2012 Why use a Purchase Commitment? • Credit risk is transferred to Farmer Mac – Manage commodity, geographic and borrower concentrations – Exclude loans from lending limit calculations • Improve financial results – Repurchase sold participations…improve profits – Risk‐weight loans at 20% versu

  6. Slide 6: What are the fees? Steps to get started

    4/11/2012 What are the fees? • No set up fee nor minimum use fee • Per loan commitment fees of 50 bps • The annual fee (paid monthly) is paid on the unpaid principal balance of each loan for the term of the pool Steps to get started • Must be a Farmer Mac I Seller • Pre‐screen loans being considered

  7. Slide 7: Questions?

    4/11/2012 Questions? 7

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