What entity is a publicly traded, federally chartered corporation that purchases agricultural loans from lenders?

Prepare with Real Estate Finance Exam. Study with flashcards and multiple-choice questions. Each question has hints and explanations. Get ready for your exam now!

The correct answer is Farmer Mac. This entity, officially known as the Federal Agricultural Mortgage Corporation, is specifically designed to serve the agricultural sector by purchasing agricultural loans from lenders and ensuring liquidity in the rural finance market. As a publicly traded corporation, Farmer Mac provides a secondary market for agricultural and rural loans, which helps to stabilize and facilitate funding for agricultural producers and rural communities.

Farmer Mac operates under a federal charter and plays a critical role in supporting the agricultural economy by providing timely access to credit for farmers and ranchers. By purchasing loans, it allows lenders to free up capital, enabling them to provide more loans in the future.

In contrast, other entities mentioned have different functions. A REIT (Real Estate Investment Trust) focuses on income-generating real estate investments and is not specific to agricultural loans. Fannie Mae and Ginnie Mae primarily deal with residential mortgages and housing finance rather than agricultural loans, making them unsuitable for this question.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy