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Farmer Mac II Adjustable and fixed-rate USDA guaranteed portions. Loans can be newly-originated or seasoned. Any USDA Farm Service Agency (FSA) Farm Ownership (FO) or term Operating Loan (OL) or USDA Rural Development Business & Industry (BI) or Community Facility (CF) guaranteed loan is eligible for sale through Farmer Mac II.

• One original Loan Guarantee (FSA-2235, FSA-1980-27, RBS 4279-5 or RD 449-34)
• One original Assignment of Guarantee (FSA-2242, RBS 4279-6 or RD 449-36)
• One copy of fully executed Promissory Note (and note amendments if applicable)
• Two original Farmer Mac II Sale Agreements

• One original Loan Guarantee (FSA-2235, FSA-1980-27, RBS 4279-5 or RD 449-34)
• One original Assignment and Servicing Agreement
• One original of fully executed Promissory Note for the guaranteed portion
• One copy of fully executed Promissory Note for the unguaranteed portion
• Two original Farmer Mac II Sale Agreements

Loan products and terms have a direct impact on the pricing received in the Farmer Mac II secondary market. The following are recommended terms and structures for standard loan pricing:

Variable Rates (Open Prepayment)

• Wall Street Journal Prime Rate with daily, monthly or quarterly adjustments; or
• Farmer Mac 3-Month Cost of Funds Index (COFI) Net Yield with calendar quarter adjustments

Adjustable Rates (Open Prepayment)

• Farmer Mac 5-Year Reset Cost of Funds Index (COFI) Net Yield with applicable standard interest rate reset date
• Farmer Mac 10-Year Reset Cost of Funds Index (COFI) Net Yield with applicable standard interest rate reset date
• Farmer Mac 15-Year Reset Cost of Funds Index (COFI) Net Yield with applicable standard interest rate reset date

Fixed Rates (Open Prepayment)

• Various fixed rate terms and amortizations as announced in the Farmer Mac II Rate Line

• Annual – January 1, April 1, July 1, or October 1
• Semi-annual – January 1 & July 1, or April 1 & October 1
• Quarterly – January 1, April 1, July 1, or October 1
• Monthly – 1st day of each month

Non-standard loans can be modified into standard loan products via a Change In Terms Agreement or an Allonge to the Promissory Note. Borrower and lender must execute the Change In Terms Agreement and the applicable USDA agency must concur with the amendment. Preferred interest accrual basis is Actual Days over 365. The Farmer Mac II cash window is open for Farmer Mac II Interest Rate Commitments (rate locks) Monday through Friday from 10:00 a.m.– 3:00 p.m. eastern time. Promissory Notes to be rate locked must be e-mailed (ratelock@farmermac2.com) or faxed (877-733-1204) to Farmer Mac II prior to rate lock. Once the commitment is completed, Farmer Mac II will fax or e-mail a Commitment to Purchase Confirmation to the Lender outlining the agreed upon terms. Step 1: Assemble the required guaranteed portion sale documents:
Step 2: Submit required guaranteed portion sale documents to the Farmer Mac II Program Administrator: (Documents should be remitted at least one week prior to the anticipated settlement date.)
Step 3: For all guaranteed portions delivered for settlement without a prior rate commitment, “Cash Rate” loan pricing will occur on the Wednesday prior to settlement.
Step 4: Proceeds for guaranteed portions purchased are wired to sellers each Thursday, which is the weekly settlement date. Sellers will receive a settlement statement from the Program Administrator detailing the wire amount. Detailed remittance procedures for Farmer Mac II guaranteed portions can be found in the Farmer Mac II Reference Guide. Servicing action requests can be made directly to the Farmer Mac II program by submitting a servicing action request form online, by e-mail (servicing@farmermac2.com) or fax (877-733-1204). Examples of possible servicing actions include: modification to loan payment schedule, adjusted payment amount, revised maturity date, and interest capitalization. Any changes to be made to the original Promissory Note will require an Allonge with the borrowers signature as well as USDA concurrence to the Allonge.