Company: AGM-PH
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000845877-25-000033
Chunk: 28

Company: FEDERAL AGRICULTURAL MORTGAGE CORP
Filing Date: 2025-02-21
Form: 10-K
Item: Item 8
Chunk 28
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 Finance line of business. In the case of USDA guaranteed trusts, Farmer Mac is not determined to be the primary beneficiary because it does not have the decision-making power over default mitigation activities. Based on the USDA's program authority over the servicing and default mitigation activities of the USDA guaranteed portions of loans, Farmer Mac believes that the USDA has the power to direct the activities that most significantly impact the trust's economic performance. Farmer Mac does not have exposure to losses that could be significant to the trust and there are no triggers that would result in Farmer Mac superseding the USDA's authority with regard to directing the activities of the trust. For VIEs classified as investment securities, which include auction-rate certificates, asset-backed securities, and government-sponsored enterprise ("GSE") guaranteed mortgage-backed securities, Farmer Mac is determined not to be the primary beneficiary because of the lack of voting rights or other powers to direct the activities of the trust.  

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The following tables present, by segment, details about the consolidation of VIEs:Table 2.4Consolidation of Variable Interest EntitiesAs of December 31, 2024Agricultural FinanceTreasuryTotal(in thousands)On-Balance Sheet:Consolidated VIEs:Loans held for investment in consolidated trusts, at amortized cost $2,038,283 $— $2,038,283 Debt securities of consolidated trusts held by third parties (1)(2)1,929,628 — 1,929,628    Unconsolidated VIEs:   Farmer Mac Guaranteed Securities:      Carrying value59,317 — 59,317       Maximum exposure to loss (3)58,985 — 58,985    Investment securities:        Carrying value (4)— 4,212,258 4,212,258         Maximum exposure to loss (3)(4)— 4,547,397 4,547,397 Off-Balance Sheet: Unconsolidated VIEs:   Farmer Mac Guaranteed Securities:      Maximum exposure to loss (3)(5)426,310 — 426,310 (1)Includes borrower remittances of $4.7 million. The borrower remittances had not been passed through to third-party investors as of December 31, 2024.(2)Includes $113.2 million in unamortized discount related to structured secur