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Loans and Allowance for Losses

12 Months Ended

Dec. 31, 2019

Loans

Loans held for investment are recorded at the unpaid principal balance, net of unamortized premium or discount and other cost adjustments. The following table displays the composition of the loan balances as of December 31, 2019 and 2018:

Table 8.1


	As of December 31, 2019										As of December 31, 2018
	Unsecuritized		In Consolidated Trusts		Total		Unsecuritized		In Consolidated Trusts		Total
	(in thousands)
Farm & Ranch	$	3,675,640	$	1,600,917	$	5,276,557	$	3,071,222	$	1,517,101	$	4,588,323
Rural Utilities	1,671,293		—		1,671,293		938,843		—		938,843
Total unpaid principal balance⁽¹⁾	5,346,933		1,600,917		6,947,850		4,010,065		1,517,101		5,527,166
Unamortized premiums, discounts, and other cost basis adjustments	44,044		—		44,044		(5,097)		—		(5,097)
Total loans	5,390,977		1,600,917		6,991,894		4,004,968		1,517,101		5,522,069
Allowance for loan losses	(8,853)		(1,601)		(10,454)		(5,565)		(1,452)		(7,017)
Total loans, net of allowance	$	5,382,124	$	1,599,316	$	6,981,440	$	3,999,403	$	1,515,649	$	5,515,052

⁽¹⁾Unpaid principal balance is the basis of presentation in disclosures of outstanding balances for Farmer Mac's lines of business.

Allowance for Losses

Farm & Ranch

The following is a summary of the changes in the total allowance for losses for each year in the three-year period ended December 31, 2019:

Table 8.2


	Allowance for Loan Losses		Reserve for Losses		Total Allowance for Losses
	(in thousands)
Balance as of December 31, 2016	$	5,415	$	2,020	$	7,435
Provision for losses	1,708		50		1,758
Charge-offs	(327)		—		(327)
Balance as of December 31, 2017	$	6,796	$	2,070	$	8,866
Provision for losses	238		97		335
Charge-offs	(17)		—		(17)
Balance as of December 31, 2018	$	7,017	$	2,167	$	9,184
Provision for/(release of) losses	3,504		(3)		3,501
Charge-offs	(67)		—		(67)
Balance as of December 31, 2019	$	10,454	$	2,164	$	12,618

The provision to the allowance for loan losses recorded during 2019 was primarily due to a specific reserve on a single specialized poultry loan, a decrease in overall credit quality, and net portfolio growth.

The total allowance for losses in the Farm & Ranch portfolio, as a percentage of outstanding loan volume, increased slightly from the previous year. The total provision for losses increased by $3.2 million, during 2019 as compared to 2018, primarily due to the specific reserve on the single specialized poultry loan mentioned above and a decrease in overall credit quality combined with net portfolio growth.

During 2018, the total allowance for losses increased because of increased loan volume within Farmer Mac's Farm & Ranch portfolio. The total allowance for losses in the Farm & Ranch portfolio, as a percentage of outstanding loan volume, remained consistent with recent years. The total provision for losses decreased by $1.4 million during 2018 as compared to 2017 primarily due to decreased loan growth year-over-year and modestly improved credit quality in the Farm & Ranch portfolio.

During 2017, the net provisions to the allowance for loan losses recorded were primarily attributable to (1) an increase in the general allowance due to overall net volume growth in on-balance sheet Farm & Ranch loans, and (2) an increase in the specific allowance for certain impaired on-balance sheet crop and permanent planting loans resulting from both an increase in the outstanding loan balance of such loans and downgrades in risk ratings on some of those loans. The net provision to the reserve for losses recorded during 2017 was primarily attributable to an increase in the general reserve due to downgrades in risk ratings on certain unimpaired Agricultural Storage and Processing loans underlying LTSPCs.

The following tables present the changes in the total allowance for losses for the years ended December 31, 2019, 2018, and 2017 by commodity type:

Table 8.3


	For the Year Ended December 31, 2019
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Beginning Balance	$	4,394	$	2,126	$	1,460	$	474	$	720	$	10	$	9,184
Provision for/(release of) losses	810		383		2,198		21		94		(5)		3,501
Charge-offs	—		—		—		(67)		—		—		(67)
Ending Balance	$	5,204	$	2,509	$	3,658	$	428	$	814	$	5	$	12,618


	For the Year Ended December 31, 2018
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Beginning Balance	$	4,081	$	2,469	$	1,211	$	481	$	606	$	18	$	8,866
Provision for/(release of) losses	313		(343)		249		10		114		(8)		335
Charge-offs	—		—		—		(17)		—		—		(17)
Ending Balance	$	4,394	$	2,126	$	1,460	$	474	$	720	$	10	$	9,184


	For the Year Ended December 31, 2017
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Beginning Balance	$	3,365	$	1,723	$	1,375	$	405	$	533	$	34	$	7,435
Provision for/(release of) losses	944		816		(151)		92		73		(16)		1,758
Charge-offs	(228)		(70)		(13)		(16)		—		—		(327)
Ending Balance	$	4,081	$	2,469	$	1,211	$	481	$	606	$	18	$	8,866

The following tables present the unpaid principal balances of loans held and loans underlying LTSPCs and off-balance sheet Farmer Mac Guaranteed Securities (excluding AgVantage securities) and the related total allowance for losses by impairment method and commodity type as of December 31, 2019 and 2018:

Table 8.4


	As of December 31, 2019
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Ending Balance:
Collectively evaluated for impairment:
On-balance sheet	$	2,664,362	$	1,161,900	$	871,341	$	356,920	$	10,360	$	4,597	$	5,069,480
Off-balance sheet	1,151,983		511,991		581,377		167,395		66,106		2,760		2,481,612
Total	$	3,816,345	$	1,673,891	$	1,452,718	$	524,315	$	76,466	$	7,357	$	7,551,092
Individually evaluated for impairment:
On-balance sheet	$	108,815	$	51,256	$	39,962	$	7,044	$	—	$	—	$	207,077
Off-balance sheet	5,698		2,114		10,207		706		—		56		18,781
Total	$	114,513	$	53,370	$	50,169	$	7,750	$	—	$	56	$	225,858
Total Farm & Ranch loans:
On-balance sheet	$	2,773,177	$	1,213,156	$	911,303	$	363,964	$	10,360	$	4,597	$	5,276,557
Off-balance sheet	1,157,681		514,105		591,584		168,101		66,106		2,816		2,500,393
Total	$	3,930,858	$	1,727,261	$	1,502,887	$	532,065	$	76,466	$	7,413	$	7,776,950
Allowance for Losses:
Collectively evaluated for impairment:
On-balance sheet	$	1,880	$	1,362	$	714	$	249	$	47	$	4	$	4,256
Off-balance sheet	599		96		308		50		767		1		1,821
Total	$	2,479	$	1,458	$	1,022	$	299	$	814	$	5	$	6,077
Individually evaluated for impairment:
On-balance sheet	$	2,628	$	1,008	$	2,447	$	115	$	—	$	—	$	6,198
Off-balance sheet	97		43		189		14		—		—		343
Total	$	2,725	$	1,051	$	2,636	$	129	$	—	$	—	$	6,541
Total Farm & Ranch loans:
On-balance sheet	$	4,508	$	2,370	$	3,161	$	364	$	47	$	4	$	10,454
Off-balance sheet	696		139		497		64		767		1		2,164
Total	$	5,204	$	2,509	$	3,658	$	428	$	814	$	5	$	12,618


	As of December 31, 2018
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Ending Balance:
Collectively evaluated for impairment:
On-balance sheet	$	2,452,803	$	952,719	$	705,752	$	329,070	$	12,097	$	4,477	$	4,456,918
Off-balance sheet	1,239,094		515,520		624,522		166,907		73,084		3,286		2,622,413
Total	$	3,691,897	$	1,468,239	$	1,330,274	$	495,977	$	85,181	$	7,763	$	7,079,331
Individually evaluated for impairment:
On-balance sheet	$	66,432	$	36,333	$	21,361	$	7,278	$	—	$	—	$	131,404
Off-balance sheet	13,298		5,249		3,737		883		—		69		23,236
Total	$	79,730	$	41,582	$	25,098	$	8,161	$	—	$	69	$	154,640
Total Farm & Ranch loans:
On-balance sheet	$	2,519,235	$	989,052	$	727,113	$	336,348	$	12,097	$	4,477	$	4,588,322
Off-balance sheet	1,252,392		520,769		628,259		167,790		73,084		3,355		2,645,649
Total	$	3,771,627	$	1,509,821	$	1,355,372	$	504,138	$	85,181	$	7,832	$	7,233,971
Allowance for Losses:
Collectively evaluated for impairment:
On-balance sheet	$	2,120	$	822	$	731	$	303	$	84	$	4	$	4,064
Off-balance sheet	668		170		207		29		636		5		1,715
Total	$	2,788	$	992	$	938	$	332	$	720	$	9	$	5,779
Individually evaluated for impairment:
On-balance sheet	$	1,329	$	1,065	$	437	$	122	$	—	$	—	$	2,953
Off-balance sheet	277		69		85		20		—		1		452
Total	$	1,606	$	1,134	$	522	$	142	$	—	$	1	$	3,405
Total Farm & Ranch loans:
On-balance sheet	$	3,449	$	1,887	$	1,168	$	425	$	84	$	4	$	7,017
Off-balance sheet	945		239		292		49		636		6		2,167
Total	$	4,394	$	2,126	$	1,460	$	474	$	720	$	10	$	9,184

The following tables present by commodity type the unpaid principal balances, recorded investment, and specific allowance for losses related to impaired loans and the recorded investment in loans on nonaccrual status as of December 31, 2019 and 2018:

Table 8.5


	As of December 31, 2019
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Impaired Loans:
With no specific allowance:
Recorded investment	$	30,846	$	16,696	$	3,195	$	1,398	$	—	$	56	$	52,191
Unpaid principal balance	30,741		16,638		3,185		1,394		—		56		52,014
With a specific allowance:
Recorded investment⁽¹⁾	84,044		36,852		47,113		6,376		—		—		174,385
Unpaid principal balance	83,772		36,732		46,984		6,356		—		—		173,844
Associated allowance	2,725		1,051		2,636		129		—		—		6,541
Total:
Recorded investment	114,890		53,548		50,308		7,774		—		56		226,576
Unpaid principal balance	114,513		53,370		50,169		7,750		—		56		225,858
Associated allowance	2,725		1,051		2,636		129		—		—		6,541

Recorded investment of loans on nonaccrual status⁽²⁾	$	34,037	$	22,849	$	28,441	$	2,454	$	—	$	—	$	87,781

⁽¹⁾Impairment analysis was performed in the aggregate in consideration of similar risk characteristics of the assets and historical statistics on $159.1 million (70%) of impaired loans as of December 31, 2019, which resulted in a specific allowance of $3.0 million.

⁽²⁾Includes $30.1 million of loans that are less than 90 days delinquent but which have not met Farmer Mac's performance criteria for returning to accrual status.


	As of December 31, 2018
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Impaired Loans:
With no specific allowance:
Recorded investment	$	20,734	$	3,592	$	5,764	$	1,922	$	—	$	—	$	32,012
Unpaid principal balance	20,632		3,573		5,737		1,912		—		—		31,854
With a specific allowance:
Recorded investment⁽¹⁾	59,335		38,176		19,443		6,276		—		70		123,300
Unpaid principal balance	59,098		38,009		19,361		6,249		—		69		122,786
Associated allowance	1,606		1,134		522		142		—		1		3,405
Total:
Recorded investment	80,069		41,768		25,207		8,198		—		70		155,312
Unpaid principal balance	79,730		41,582		25,098		8,161		—		69		154,640
Associated allowance	1,606		1,134		522		142		—		1		3,405

Recorded investment of loans on nonaccrual status⁽²⁾	$	26,611	$	21,349	$	8,803	$	4,645	$	—	$	—	$	61,408

⁽¹⁾Impairment analysis was performed in the aggregate in consideration of similar risk characteristics of the assets and historical statistics on $120.9 million (78%) of impaired loans as of December 31, 2018, which resulted in a specific allowance of $2.7 million.

⁽²⁾Includes $41.8 million of loans that are less than 90 days delinquent but which have not met Farmer Mac's performance criteria for returning to accrual status.

The following table presents by commodity type the average recorded investment and interest income recognized on impaired loans for the years ended December 31, 2019 and 2018:

Table 8.6


	December 31, 2019
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
For the Year Ended:
Average recorded investment in impaired loans	$	101,053	$	44,986	$	36,054	$	7,953	$	—	$	60	$	190,106
Income recognized on impaired loans	1,157		625		687		284		—		—		2,753


	December 31, 2018
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
For the Year Ended:
Average recorded investment in impaired loans	$	74,804	$	44,461	$	24,523	$	8,758	$	—	$	231	$	152,777
Income recognized on impaired loans	1,219		1,687		299		241		—		—		3,446

For the year ended December 31, 2019, the recorded investment of loans determined to be troubled debt restructurings ("TDRs") was $38.5 million both before and after restructuring. For the year ended December 31, 2018, the recorded investment of loans determined to be TDRs was immaterial. As of December 31, 2019 and 2018, there were no TDRs identified during the previous 12 months that were in default under the modified terms. The effect of TDRs on Farmer Mac's allowance for loans losses was immaterial for the years ended December 31, 2019 and 2018.

When particular criteria are met, such as the default of the borrower, Farmer Mac becomes entitled to purchase the defaulted loans underlying Farmer Mac Guaranteed Securities (commonly referred to as "removal-of account" provisions). Farmer Mac records all such defaulted loans at their unpaid principal balance during the period in which Farmer Mac becomes entitled to purchase the loans and, therefore, regains effective control over the transferred loans. In accordance with the terms of all LTSPCs, Farmer Mac acquires loans that are either 90 days or 120 days delinquent (depending on the provisions of the applicable agreement) upon the request of the counterparty. After purchase, these defaulted loans are treated as nonaccrual loans and, therefore, interest is accounted for on a cash basis. Any decreases in expected cash flows are recognized as impairment.

Net credit losses and 90-day delinquencies as of and for the periods indicated for loans held and loans underlying off-balance sheet securities representing interests in pools of eligible Farm & Ranch loans ("Farm & Ranch Guaranteed Securities") and LTSPCs are presented in the table below. As of December 31, 2019, there were no delinquencies and no probable losses inherent in Farmer Mac's Rural Utilities loan portfolio and Farmer Mac had not experienced credit losses on any Rural Utilities loans.

Table 8.7


	90-Day Delinquencies⁽¹⁾						Net Credit Losses/(Recoveries)
	As of						For the Year Ended
	December 31, 2019		December 31, 2018		December 31, 2019		December 31, 2018		December 31, 2017
	(in thousands)
On-balance sheet assets:
Farm & Ranch:
Loans	$	57,719	$	19,577	$	131	$	40	$	(1,397)
Total on-balance sheet	$	57,719	$	19,577	$	131	$	40	$	(1,397)
Off-balance sheet assets:
Farm & Ranch:
LTSPCs	$	3,235	$	7,304	$	—	$	—	$	—
Total off-balance sheet	$	3,235	$	7,304	$	—	$	—	$	—
Total	$	60,954	$	26,881	$	131	$	40	$	(1,397)

⁽¹⁾Includes loans and loans underlying off-balance sheet Farm & Ranch Guaranteed Securities and LTSPCs that are 90 days or more past due, in foreclosure, or in bankruptcy with at least one missed payment, excluding loans performing under either their original loan terms or a court-approved bankruptcy plan.

Of the $57.7 million of on-balance sheet loans reported as 90-day delinquencies as of December 31, 2019, none were subject to "removal-of-account" provisions. Of the $19.6 million of on-balance sheet loans reported as 90-day delinquencies as of December 31, 2018, $0.1 million were loans subject to "removal-of-account" provisions.

Rural Utilities

No allowance for losses has been provided for Farmer Mac's Rural Utilities line of business based on the performance of the loans in this line of business and the credit quality of the collateral supporting these loans, as well as Farmer Mac's counterparty risk analysis. As of December 31, 2019, there were no delinquencies or probable losses inherent in Farmer Mac's Rural Utilities loans held or underlying LTSPCs.

Credit Quality Indicators

The following tables present credit quality indicators related to Farm & Ranch loans held and loans underlying LTSPCs and off-balance sheet Farm & Ranch Guaranteed Securities as of December 31, 2019 and 2018:

Table 8.8


	As of December 31, 2019
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Credit risk profile by internally assigned grade⁽¹⁾
On-balance sheet:
Acceptable	$	2,556,956	$	1,050,160	$	825,234	$	343,329	$	10,360	$	4,597	$	4,790,636
Special mention⁽²⁾	107,406		111,739		46,107		13,591		—		—		278,843
Substandard⁽³⁾	108,815		51,257		39,962		7,044		—		—		207,078
Total on-balance sheet	$	2,773,177	$	1,213,156	$	911,303	$	363,964	$	10,360	$	4,597	$	5,276,557
Off-Balance Sheet:
Acceptable	$	1,033,002	$	484,601	$	521,341	$	161,361	$	66,106	$	2,594	$	2,269,005
Special mention⁽²⁾	68,372		22,909		35,618		1,612		—		—		128,511
Substandard⁽³⁾	56,307		6,595		34,625		5,128		—		222		102,877
Total off-balance sheet	$	1,157,681	$	514,105	$	591,584	$	168,101	$	66,106	$	2,816	$	2,500,393
Total Ending Balance:
Acceptable	$	3,589,958	$	1,534,761	$	1,346,575	$	504,690	$	76,466	$	7,191	$	7,059,641
Special mention⁽²⁾	175,778		134,648		81,725		15,203		—		—		407,354
Substandard⁽³⁾	165,122		57,852		74,587		12,172		—		222		309,955
Total	$	3,930,858	$	1,727,261	$	1,502,887	$	532,065	$	76,466	$	7,413	$	7,776,950

Commodity analysis of past due loans⁽¹⁾
On-balance sheet	$	21,167	$	15,828	$	19,354	$	1,370	$	—	$	—	$	57,719
Off-balance sheet	1,493		196		1,066		480		—		—		3,235
90 days or more past due	$	22,660	$	16,024	$	20,420	$	1,850	$	—	$	—	$	60,954

⁽¹⁾Amounts represent unpaid principal balance of risk-rated loans, which is the basis Farmer Mac uses to analyze its portfolio, and recorded investment of past due loans.

⁽²⁾Assets in the "Special mention" category generally have potential weaknesses due to performance issues but are currently considered to be adequately secured.

⁽³⁾Substandard assets have a well-defined weakness or weaknesses and there is a distinct possibility that some loss will be sustained if deficiencies are not corrected.


	As of December 31, 2018
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Credit risk profile by internally assigned grade⁽¹⁾
On-balance sheet:
Acceptable	$	2,381,853	$	937,793	$	679,253	$	321,345	$	10,604	$	4,477	$	4,335,325
Special mention⁽²⁾	71,096		14,926		26,499		7,725		1,493		—		121,739
Substandard⁽³⁾	66,286		36,333		21,361		7,278		—		—		131,258
Total on-balance sheet	$	2,519,235	$	989,052	$	727,113	$	336,348	$	12,097	$	4,477	$	4,588,322
Off-Balance Sheet
Acceptable	$	1,128,787	$	469,479	$	577,708	$	162,730	$	71,959	$	2,656	$	2,413,319
Special mention⁽²⁾	62,430		36,778		30,703		1,023		—		—		130,934
Substandard⁽³⁾	61,175		14,512		19,848		4,037		1,125		699		101,396
Total off-balance sheet	$	1,252,392	$	520,769	$	628,259	$	167,790	$	73,084	$	3,355	$	2,645,649
Total Ending Balance:
Acceptable	$	3,510,640	$	1,407,272	$	1,256,961	$	484,075	$	82,563	$	7,133	$	6,748,644
Special mention⁽²⁾	133,526		51,704		57,202		8,748		1,493		—		252,673
Substandard⁽³⁾	127,461		50,845		41,209		11,315		1,125		699		232,654
Total	$	3,771,627	$	1,509,821	$	1,355,372	$	504,138	$	85,181	$	7,832	$	7,233,971

Commodity analysis of past due loans⁽¹⁾
On-balance sheet	$	8,345	$	2,997	$	4,059	$	4,176	$	—	$	—	$	19,577
Off-balance sheet	6,476		197		—		631		—		—		7,304
90 days or more past due	$	14,821	$	3,194	$	4,059	$	4,807	$	—	$	—	$	26,881

⁽¹⁾Amounts represent unpaid principal balance of risk-rated loans, which is the basis Farmer Mac uses to analyze its portfolio, and recorded investment of past due loans.

⁽²⁾Assets in the "Special mention" category generally have potential weaknesses due to performance issues but are currently considered to be adequately secured.

⁽³⁾Substandard assets have a well-defined weakness or weaknesses and there is a distinct possibility that some loss will be sustained if deficiencies are not corrected.

Concentrations of Credit Risk

The following table sets forth the geographic and commodity/collateral diversification, the range of original loan-to-value ratios, and the range in the size of borrower exposure for all Farm & Ranch loans held and loans underlying off-balance sheet Farm & Ranch Guaranteed Securities and LTSPCs as of December 31, 2019 and 2018:

Table 8.9


	As of
	December 31, 2019		December 31, 2018
	(in thousands)
By commodity/collateral type:
Crops	$	3,930,858	$	3,771,627
Permanent plantings	1,727,261		1,509,821
Livestock	1,502,887		1,355,372
Part-time farm	532,065		504,138
Ag. Storage and Processing	76,466		85,181
Other	7,413		7,832
Total	$	7,776,950	$	7,233,971
By geographic region⁽¹⁾:
Northwest	$	982,222	$	855,596
Southwest	2,573,691		2,273,184
Mid-North	2,358,592		2,296,073
Mid-South	947,544		883,279
Northeast	321,794		332,370
Southeast	593,107		593,469
Total	$	7,776,950	$	7,233,971
By original loan-to-value ratio:
0.00% to 40.00%	$	1,418,075	$	1,333,790
40.01% to 50.00%	2,008,307		1,811,166
50.01% to 60.00%	2,616,272		2,530,484
60.01% to 70.00%	1,385,116		1,244,823
70.01% to 80.00%⁽²⁾	329,979		289,427
80.01% to 90.00%⁽²⁾	19,201		24,281
Total	$	7,776,950	$	7,233,971
By size of borrower exposure⁽³⁾:
Less than $1,000,000	$	2,455,109	$	2,431,296
$1,000,000 to $4,999,999	2,812,060		2,755,996
$5,000,000 to $9,999,999	1,003,021		916,422
$10,000,000 to $24,999,999	773,658		601,349
$25,000,000 and greater	733,102		528,908
Total	$	7,776,950	$	7,233,971

⁽¹⁾Geographic regions: Northwest (AK, ID, MT, OR, WA, WY); Southwest (AZ, CA, CO, HI, NM, NV, UT); Mid-North (IA, IL, IN, MI, MN, NE, ND, SD, WI); Mid-South (AR, KS, LA, MO, OK, TX); Northeast (CT, DE, KY, MA, MD, ME, NH, NJ, NY, OH, PA, RI, VA, VT, WV); Southeast (AL, FL, GA, MS, NC, SC, TN).

⁽²⁾Primarily part-time farm loans. Loans with original loan-to-value ratios of greater than 80% are required to have private mortgage insurance.

⁽³⁾Includes multiple loans to the same borrower or borrower-related entities.

The original loan-to-value ratio is calculated by dividing the loan principal balance at the time of guarantee, purchase, or commitment by the appraised value at the date of loan origination or, when

available, the updated appraised value at the time of guarantee, purchase, or commitment. Current loan-to-value ratios may be higher or lower than the original loan-to-value ratios.