Issues Surrounding Underwriting Standards Developed by the Federal Agricultural Mortgage Corporation

T-RCED-89-71: Published: Sep 27, 1989. Publicly Released: Sep 27, 1989.

Additional Materials:


Office of Public Affairs
(202) 512-4800

GAO reviewed the Federal Agricultural Mortgage Corporation's (FAMC) underwriting standards for secondary markets. GAO found that: (1) FAMC did not define some key terms and concepts and did not specify accounting practices to be used in calculating financial ratios and preparing financial statements; (2) some standards did not place limitations on the amount of loan exceptions allowed; (3) FAMC should evaluate the potential effects of its standards and financial ratios; (4) standardized market operating agreements between a lender and pooler could determine who bears the ultimate risk in the market; (5) FAMC should examine the potential implications of differing regulatory approaches on market participants; (6) the standards may allow poolers to bypass the geographic diversification requirement; (7) additional evaluation was necessary to ensure that FAMC appraisal standards were adequate; and (8) FAMC rural housing standards were inadequate.

Nov 21, 2017

Oct 24, 2017

Oct 2, 2017

Aug 24, 2017

Aug 14, 2017

May 15, 2017

May 11, 2017

Apr 28, 2017

Mar 16, 2017

Feb 13, 2017

Looking for more? Browse all our products here