Farm Credit Administration
1501 Farm Credit Drive
McLean, Virginia 22102-5090
For Immediate Release
Contact: Martha Schober or Christine Quinn, 703-883-4056
Web site: www.fca.gov
Farm Credit Administration Board Approves Proposed Rule on Farmer Mac Risk-Based Capital Stress Test
McLEAN, Va., October 13, 2005 - The Farm Credit Administration (FCA or Agency) Board today approved a proposed rule that would revise certain FCA regulations governing the Federal Agricultural Mortgage Corporation's (Farmer Mac or Corporation) Risk-based Capital Stress Test (RBCST).
Farmer Mac is a government-sponsored enterprise (GSE) regulated and examined by FCA. Congress created Farmer Mac in 1987 to improve the availability of mortgage financing to farmers, ranchers, and rural homeowners. It provides a secondary market for agricultural real estate and rural housing mortgage loans and helps provide greater liquidity to agricultural lenders.
The proposed rule is designed to update Farmer Mac’s RBCST to reflect the evolution of the Corporation’s loan portfolio and the practices of other leading financial institutions. The FCA Board is currently scheduled to consider a final rule for the Farmer Mac RBCST in September 2006.
The proposed rule will be published in the Federal Register for a 90-day comment period. Comments may be submitted by electronic mail to firstname.lastname@example.org, through the Pending Regulations section of FCA’s Web site at www.fca.gov, or through the federal government Web portal at www.regulations.gov. Comments may also be sent by mail to S. Robert Coleman, Director, Office of Secondary Market Oversight, Farm Credit Administration, 1501 Farm Credit Drive, McLean, VA 22102-5090, or by fax to 703-883-4477. Comments received may be reviewed at the FCA office in McLean, Virginia, or through FCA’s Web site at www.fca.gov.
The FCA Board also heard a report by Agency staff on the impact of Hurricane Katrina and Hurricane Rita on agriculture, the general economy, and the Farm Credit System (FCS or System) institutions serving the affected region. The report noted that while the hurricanes caused substantial damage, the FCS as a whole and the specific associations that serve the four states most affected are well positioned to help their member-borrowers recover and rebuild their operations and financial strength. System institutions have the flexibility under existing FCA regulations, within their financial capability and safety and soundness considerations, to provide disaster relief options to their customers.
The Farm Credit Administration is the safety and soundness regulator of the cooperative Farm Credit System. FCA charters, regulates, and examines the 109 banks, associations, and service corporations of the System. System institutions make loans to agricultural producers and their cooperatives nationwide. Members of the FCA Board are Nancy C. Pellett, Chairman and CEO, Douglas L. “Doug” Flory, and Dallas P. Tonsager.
Note: FCA news releases are available on the Internet. Access the FCA Home Page at www.fca.gov.