Farmer Mac announced the successful completion of a $318.8 million securitization of agricultural mortgage loans, marking its fifth transaction in the FARM series since 2021. This initiative is central to the company's mission of improving credit accessibility in rural America.
The mortgage pool for FARM Series 2024-2 comprised 446 agricultural mortgage loans, all underwritten to Farmer Mac's standards. The deal included a $294.9 million senior tranche guaranteed by Farmer Mac and a $23.9 million unguaranteed subordinate tranche.
The senior tranche was structured with three classes of notes (A, A1, and A2) to provide differing principal repayment cashflows, which attracted new investor demand. This securitization demonstrates Farmer Mac's ability to access capital markets and manage its portfolio effectively.
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