Here are the results of yesterday's research on Farmer Mac. All info is from the Farmer Mac homepage.
In February 1996, Congress enacted legislation that revised the operating structure
of Farmer Mac, giving it the authority to purchase qualified loans directly from
lenders and to guarantee 100% of the securities issued.That legislation also
required Farmer Mac to increase its equity capital to at least $25 million by
February 1998. The self-offering would be a further step by Farmer Mac toward
complying with that requirement, and would likely be in addition to any other
offering, public or private, buyer on behalf of Farmer Mac to satisfy its ongoing
capital requirements.
Farmer Mac is the federally chartered corporation created by Congress to establish
a secondary market for agricultural real estate and rural housing mortgage loans,
and to facilitate capital market funding for U.S.Department of Agriculture (USDA)
guaranteed farm program and rural development loans. By statute, Farmer Mac's
Class A Voting Common Stock may be held only by financial institutions, such as
banks, mortgage banks, investment banks and insurance companies; there are no
restrictions on the ownership of Farmer Mac's Class C Non-Voting Common Stock.
Farmer Mac common stock is traded on the NASDAQ Small Cap Market under the
symbols FAMCA (ClassA) and FAMCK (Class C).
Farmer Mac is America's secondary market for agricultural real estate and rural
housing mortgage loans. Farmer Mac was created by Congress to improve the
availability of mortgage credit to America's farmers, ranchers and rural
homeowners, businesses and communities. Farmer Mac does this primarily by
purchasing qualified loans from lenders, thereby replenishing their source of
funds to make new loans.
The loans Farmer Mac purchases are then grouped into pools and used to back
securities that farmer Mac sells periodically into the capital markets. Those
securities are supported by Farmer Mac's guarantee of timely payment of principal
and interest. Although created by Congress, Farmer Mac is a publicly traded
corporation owned by its stockholders. For more information on Farmer Mac,
please browse our site.
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