The American Bankers Association and Federal Agricultural Mortgage Corporation on Friday announced the renewal of their agreement to assist member banks with the sale of their agricultural loans into the secondary market.
Under the agreement, ABA member banks will enjoy special advantaged pricing on select, fixed-rate farm and ranch loans. ABA members will also benefit from customized learning tools, support and communications as well as dedicated assistance through a special email account.
"With this agreement, our members will continue to have better access to Farmer Mac and the benefits that the secondary market for agricultural mortgages can bring to their customers," said Bill Kroll, executive vice president of ABA's Corporation for American Banking.
"Our Alliance with Farmer Mac not only provides our member banks with preferred rates on long-term fixed-rate farm and ranch loans, it also enables banks to shift the credit and interest rate risk away from the bank, and provides them with increased lending capacity and greater liquidity," Kroll said.
"Our alliance has proven to be a mutually beneficial platform that brings the benefits of our product offerings to bankers across the country," said Tim Buzby, Farmer Mac president and CEO. "Our list of active banker-participants has grown every year as we begin the 10-year anniversary of our alliance with ABA. These participating bankers are telling us they're very pleased with our products and the pricing advantages these products bring to their banks."
ABA members that participate in the alliance can choose from a variety of products including 15-year fixed rate mortgage, or 7/1 and 10/1 adjustable rate mortgages.
For more information, visit the American Bankers Association website.