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Guarantees and Long Term Standby Purchase Commitments | 9 Months Ended
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Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract] |
Guarantees and Long Term Standby Purchase Commitments Disclosure | GUARANTEES AND LONG-TERM STANDBY PURCHASE COMMITMENTS Farmer Mac offers two credit enhancement alternatives to direct loan purchases that allow approved lenders the ability to retain the cash flow benefits of their loans and increase their liquidity and lending capacity: (1) Farmer Mac Guaranteed Securities, which are available through each of the Farm & Ranch, USDA Guarantees, Rural Utilities, and Institutional Credit lines of business, and (2) LTSPCs, which are available through the Farm & Ranch or the Rural Utilities lines of business. The following table presents the maximum principal amount of potential undiscounted future payments that Farmer Mac could be required to make under all off-balance sheet Farmer Mac Guaranteed Securities as of September 30, 2017 and December 31, 2016, not including offsets provided by any recourse provisions, recoveries from third parties, or collateral for the underlying loans: Table 6.1
Outstanding Balance of Off-Balance Sheet Farmer Mac Guaranteed Securities
| As of September 30, 2017 |  | As of December 31, 2016
| (in thousands)
Farm & Ranch: |  |  |
Guaranteed Securities | $ | 354,823 |  |  | $ | 415,441 |
USDA Guarantees: |  |  |  |  |
Farmer Mac Guaranteed USDA Securities | 226,802 |  |  | 103,976 |
Institutional Credit: |  |  |  |  |
AgVantage Securities | 13,214 |  |  | 983,214 |
Revolving floating rate AgVantage facility(1) | 300,000 |  |  | 300,000 |
Total off-balance sheet Farmer Mac Guaranteed Securities | $ | 894,839 |  |  | $ | 1,802,631 |
(1) | Relates to a revolving floating rate AgVantage facility subject to specified contractual terms. Farmer Mac receives a fixed fee based on the full dollar amount of the facility.
Eligible loans and other eligible assets may be placed into trusts that are used as vehicles for the securitization of the transferred assets and the Farmer Mac-guaranteed beneficial interests in the trusts are sold to investors. The following table summarizes the significant cash flows received from and paid to trusts used for Farmer Mac securitizations: Table 6.2
| For the Nine Months Ended
| September 30, 2017 |  | September 30, 2016
| (in thousands)
Proceeds from new securitizations | $ | 404,246 |  |  | $ | 457,369 |
Guarantee fees received | 2,141 |  |  | 2,333 |
Purchases of assets from the trusts | (3,147 | ) |  | (2,118 | )
Farmer Mac has recorded a liability for its obligation to stand ready under the guarantee in the guarantee and commitment obligation on the consolidated balance sheets. This liability approximated $3.8 million as of September 30, 2017 and $5.5 million as of December 31, 2016. As of September 30, 2017 and December 31, 2016, the weighted-average remaining maturity of all loans underlying off-balance sheet Farmer Mac Guaranteed Securities, excluding AgVantage securities, was 10.1 years and 10.7 years, respectively. As of September 30, 2017 and December 31, 2016, the weighted-average remaining maturity of the off-balance sheet AgVantage securities was 1.1 years and 0.7 years, respectively. Long-Term Standby Purchase Commitments An LTSPC is a commitment by Farmer Mac to purchase eligible loans from an identified pool of loans under specified circumstances set forth in the applicable agreement, either for cash or in exchange for Farmer Mac Guaranteed Securities, on one or more undetermined future dates. As consideration for its assumption of the credit risk on loans underlying an LTSPC, Farmer Mac receives a commitment fee payable monthly in arrears in an amount approximating what would have been the guarantee fee if the transaction were structured as a swap for Farmer Mac Guaranteed Securities. The maximum principal amount of potential undiscounted future payments that Farmer Mac could be requested to make under all LTSPCs, not including offsets provided by any recourse provisions, recoveries from third parties, or collateral for the underlying loans, was $3.0 billion as of September 30, 2017 and $3.1 billion as of December 31, 2016. As of both September 30, 2017 and December 31, 2016, the weighted-average remaining maturity of all loans underlying LTSPCs was 15.2 years and 15.1 years, respectively. For those LTSPCs issued or modified on or after January 1, 2003, Farmer Mac has recorded a liability for its obligation to stand ready under the commitment in the guarantee and commitment obligation on the consolidated balance sheets. This liability approximated $31.5 million as of September 30, 2017 and $31.8 million as of December 31, 2016.

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