WASHINGTON, August 18, 2021 / PRNewswire / – Federal Agricultural Mortgage Corporation (Farmer Mac; NYSE: AGM and AGM.A), a national aftermarket provider that is increasing the availability and affordability of credit for rural America, announced today that it is expanding its operations by expanding its internal loan servicing function. To further expand these capabilities, the company acquired loan service rights for a portion of its Farm & Ranch loan portfolios and USDA guaranteed loans through strategic acquisitions.
Farmer Mac has historically opted for a decentralized model for servicing its loan portfolios, contracting with a network of third parties (“Central Service Providers”) to take over most of the loan servicing responsibilities for its Farm & Ranch and USDA Guaranteed loan portfolios. With the expansion of its own loan service capabilities, Farmer Mac will now act as the central service provider for all Farmer Mac-owned loans currently serviced by Conterra Ag Capital (“Conterra”), one of Farmer Mac’s primary central service centers, which will We continue to work closely with Farmer Mac as an important lender. As part of this strategic deal, Farmer Mac acquired all of Conterra’s rights to service loans held by Farmer Mac, covering a significant portion of Farm & Ranch’s total loan portfolio and USDA guaranteed by Farmer Mac. Farmer Mac also hired key personnel from Conterra’s loan service team to further strengthen its loan service capabilities. In addition to the Service Rights acquired from Conterra, Farmer Mac will also service some of the new loans made through the Farmer Mac merchant network along with the remaining network of central service centers that will continue to operate under the current central service model. The company expects its new role as a central support staff to improve efficiency, which should ultimately support its mission to reduce the cost of capital for rural America, as well as deliver key benefits to its customer base.
“Expanding our capacity to serve domestic loans represents an incredible opportunity for Farmer Mac and will bring many benefits to our core clients – lending institutions for rural America,” said Brad Nordholm, President and CEO of Farmer Mac. “We will take this opportunity to improve the efficiency of our loan servicing platforms and take this opportunity to more directly oversee and manage a significant portion of our portfolio, which will give us increased security, greater control and timely access to data, and improved transparency of lending results from start to repayment. We are also excited about the growth opportunities that this strategic investment will provide as it provides us with the talent and infrastructure to more efficiently and efficiently service large and complex commercial loans – a key driver of our long-term growth strategy. ”
Nordholm continued: “This move is an important example of our dual strategy of expanding business opportunities as well as deepening relationships with our existing core clients. We believe this will ultimately enable us to raise capital to support rural America and improve customer service. our network of lenders in support of our mission to expand access to competitive credit for the benefit of farmers, ranchers and rural people in our country. “
“We are delighted to welcome part of the talented Conterra loan service team to the Farmer Mac team,” concluded Nordholm. “For the past seven years, they have been part of a team that has earned an exceptional reputation among our clients. Their expertise will enable us to seamlessly offer the same quality service that our customers deserve and expect whenever they interact with us or through any of our third party central service centers. With their help, we will continue to work with our central service partners to provide a seamless experience for all of our customers. ”
About Farmer Mac
Farmer Mac is a vital part of agricultural credit markets and was created to expand access and reduce the cost of credit for the benefit of American agricultural and rural communities. As a national secondary market for agricultural loans, we provide financial solutions to a wide range of members of the agricultural community, including agricultural lenders, agribusiness and other institutions, who can benefit from access to flexible and affordable financing and risk management tools. Farmer Mac customers benefit from our low cost of ownership, low overhead and high operational efficiency. More information on Farmer Mac can be found on the Farmer Mac website at www.farmermac.com…
SOURCE Farmer Mac