The Independent Community Bankers of America (ICBA) and the Federal Agricultural Mortgage Corp. (Farmer Mac) have launched a new program that will provide pricing discounts for ICBA members on several Farmer Mac loan offerings. Through the program, ICBA members will also have access to Farmer Mac educational tools and communication links to help answer questions about delivering loans to the Farmer Mac secondary market.
ICBA member banks approved to use Farmer Mac's existing programs will automatically be enrolled in the new program. In addition to the complete list of Farmer Mac products, the program offers ICBA members four discounted options that Farmer Mac says provide farm borrowers with greater flexibility in managing the trade-off between the interest rate on their real estate loans and changing rate environments.
The products available include two repricing products in which the rate is set for 10-year periods, with loan terms of 15, 20, 25 or 30 years, depending on the product chosen; a product that reprices every five years, with loan terms of 10, 15, 20 or 25 years; and an open prepay product indexed to LIBOR that reprices monthly with loan terms of 15 or 25 years.
‘ICBA is pleased to join with Farmer Mac to offer this exciting new program to community bankers for their agricultural real estate lending needs,’ says Camden R. Fine, ICBA president and CEO. ‘We encourage community bankers to take full advantage of the program, since it offers attractive loan products – including a 30-year loan – and provides tools and pricing discounts that will enhance their competitiveness in the marketplace.’
SOURCES: Farmer Mac, ICBA