Mortgage Daily Logo
mortgage news from industry experts

Farmer Mac Business Up, Earnings Down

Farmer Mac Business Up, Earnings Down

3rd quarter business volume nearly $350 million

October 24, 2003

By staff

The national secondary market for agricultural real estate loans continued its upward trend in production, but its net income followed a different path, decreasing by more than half.

The Federal Agricultural Mortgage Corporation (Farmer Mac) reported purchases, guarantees and commitments totaled $349.1 million for the third quarter. This figure represents an increase from the prior quarter’s $322.3 million and the 2002 third quarter’s $236.0 million.

The new business volume total was derived from three separate loan types in its portfolio. Long-term standby purchase commitments contributed the highest amount totaling $199.6 million, and Farmer Mac II followed with $106.7 million. While volume has increased for both of these sectors all year long, Farmer Mac I volume decreased, accounting $42.8 million of the third quarter’s total, compared to the $65.6 million it contributed in the second quarter.

New business volume for the first nine months of the year amounted to $0.9 billion, a decrease from $1.6 billion during the same period last year, according to the Washington, D.C.-based company’s latest report.

Furthermore, a company executive said in the announcement that “as a result of Farmer Mac’s ongoing credit risk management efforts, 90-day delinquencies in Farmer Mac’s portfolio were at their lowest levels in more than two years: $47.1 million…down from the September 30, 2002 levels of $79.8 million.”

But, third quarter net income reportedly did not fare so well — falling steeply to $3.3 million from the second quarter’s $8.4 million. Net income in the third quarter in 2002 totaled $5.0 million, the company reported.

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming home closing documents have been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand new mortgage loan can be a difficult task, especially for first time homeowners. After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first mortgage...


Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI

Related Posts