Farmer Mac 2 Seller Eligibility: If You Have a Guarantee, You’re Eligible to Sell

Any lender, or other seller of guaranteed portions, may participate in this program. All that is required is that the lenders originate USDA guaranteed loans in accordance with existing standards and procedures. Farmer Mac 2 does not prescribe any standards or procedures for the extension of USDA credit.

How Farmer Mac 2 Purchases Work

Lenders participating in the Farmer Mac 2 program sell the guaranteed portions of USDA loans directly to Farmer Mac’s subsidiary, Farmer Mac II LLC, and retain the unguaranteed portions of those loans in accordance with the terms of the existing USDA guaranteed loan programs.

  • Farmer Mac 2 maintains a continuous “buy side” in the market, ready to purchase saleable portions of performing loans from any lender or holder on efficient, predictable terms.
  • Daily, Farmer Mac 2 “posts” current indicative Net Yields in the Farmer Mac 2 Rate Line. Lenders who wish to receive the weekly Rate Line may do so by contacting the Farmer Mac marketing team.
  • USDA guaranteed portions can be sold to Farmer Mac 2 regardless of their age, as long as they are not delinquent and the lender has no actual or constructive knowledge of any impending delinquency or default and does not anticipate pay off, liquidation, or delinquency within the next 12 months.
  • For more information about selling guaranteed portions please refer to our online Reference Guide.

Lender Servicing Responsibilities

Lenders retain all servicing responsibilities on the guaranteed portion they sell into the Farmer Mac 2 program and receive fees for their ongoing efforts. In the Farmer Mac 2 program, the lender maintains a direct relationship with their borrower and takes on payment remittance responsibilities. Requests to change any terms on loans currently participated with Farmer Mac 2 should be submitted in Farmer Mac 2’s Servicing Action Module (SAM).  Any inquiries regarding potential servicing requests may be directed to servicing@farmermac2.commodifications must be approved before being executed.