Agency Issues

In general, backed by government agencies

Agency Issues

Second in safety to U.S. Treasury Securities

Government agencies

2010 Kaplan, Inc.

Agency Issues
Government National Mortgage Association (GNMA)
Backed by full faith and credit of the U.S. Government Mortgage backed security
P&I

Agency Issues
Pass-through certificate
Monthly checks of principal and interest Subject to
Reinvestment risk Prepayment risk

GNMA

Taxed at all levels

VA FHA
$

Federal State Local

2010 Kaplan, Inc.

$25,000 passthrough certificate

GNMA
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Agency Issues
Federal National Mortgage Corporation (FNMA or Fannie Mae)
Publicly held (NYSE) Purchases conventional and insured mortgages (i.e., FHA and VA) Pass-through certificate Semiannual interest Taxed at all levels
Federal State Local
2010 Kaplan, Inc. 5

Agency Issues
Federal Home Loan Mortgage Association (Freddie Mac)
Publicly held (NYSE) Purchases residential mortgages from financial institutions Pass-through certificate Monthly or semiannual interest Taxed at all levels
Federal State Local
2010 Kaplan, Inc. 6

Agency Issues
The Farm Credit System (FCS)
A network of lending institutions that provides agricultural financing and credit
Eight banks and 225 Farm Credit lenders

Agency Issues
Federal Land Banks
Mortgages to farmers and ranchers

Federal Intermediate Credit Bank

Loans for livestock and machinery

Privately owned, government sponsored

Bank for Cooperatives

Loans to farm cooperatives

Interest is exempted at the state and local level

2010 Kaplan, Inc.

2010 Kaplan, Inc.

Agency Issues
Student Loan Marketing Association (Sallie Mae)
SLM stock trades on the NYSE Provides student loans for higher education Interest tax-exempt in most states

2010 Kaplan, Inc.