§2279aa–1 Federal Agricultural Mortgage Corporation

Summary

Creates a federal corporation called the Federal Agricultural Mortgage Corporation. It is part of the Farm Credit System. The Corporation will not be responsible for debts of other Farm Credit System institutions, and those institutions will not be responsible for the Corporation’s debts. The Corporation must work with loan originators to make common rules for approving loans, valuing collateral, and repayment. It must decide which agricultural mortgage marketing facilities can contract with it to get guarantees for pools of loans. It must guarantee on-time payment of principal and interest on securities tied to those loan pools. It may buy qualified loans and sell securities backed by them, and guarantee those securities will be paid on time. Qualified loans — loans that meet the Corporation’s eligibility rules.