
	LOANS AND ALLOWANCE FOR LOSSES

Loans

Farmer Mac classifies loans as either held for investment or held for sale. Loans held for investment are recorded at the unpaid principal balance, net of unamortized premium or discount and other cost adjustments. Loans held for sale are reported at the lower of cost or fair value determined on a pooled basis. As of March 31, 2014 and December 31, 2013, Farmer Mac had no loans held for sale. The following table displays the composition of the loan balances as of March 31, 2014 and December 31, 2013:

Table 5.1



	March 31, 2014									December 31, 2013
	Unsecuritized			In Consolidated Trusts			Total			Unsecuritized			In Consolidated Trusts			Total
	(in thousands)
Farm & Ranch	$	1,910,389		$	312,569		$	2,222,958		$	1,875,958		$	259,509		$	2,135,467
Rural Utilities	734,717			292,529			1,027,246			698,010			354,241			1,052,251
Total unpaid principal balance (1)	2,645,106			605,098			3,250,204			2,573,968			613,750			3,187,718
Unamortized premiums, discounts and other cost basis adjustments	(3,392		)	4,366			974			(3,843		)	16,239			12,396
Total loans	2,641,714			609,464			3,251,178			2,570,125			629,989			3,200,114
Allowance for loan losses	(6,959		)	(451		)	(7,410		)	(6,587		)	(279		)	(6,866		)
Total loans, net of allowance	$	2,634,755		$	609,013		$	3,243,768		$	2,563,538		$	629,710		$	3,193,248


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

Allowances for Losses

Farmer Mac maintains an allowance for loan losses to cover estimated probable losses on loans held and a reserve for losses to cover estimated probable losses on loans underlying long-term standby purchase commitments ("LTSPCs") and off-balance sheet Farmer Mac Guaranteed Securities. As of March 31, 2014 and December 31, 2013, Farmer Mac recorded allowances for losses of $14.0 million and $13.3 million, respectively. See Note 3 and Note 6 for more information about Farmer Mac Guaranteed Securities. Farmer Mac Guaranteed Securities do not include AgVantage securities with regard to the allowance for losses discussion.

Farmer Mac's allowance for losses is presented in two components on its consolidated balance sheets:


•	an "Allowance for loan losses" on loans held; and


•	a "Reserve for losses" on loans underlying LTSPCs and off-balance sheet Farmer Mac Guaranteed Securities.

The following is a summary of the changes in the total allowance for losses for the three months ended March 31, 2014 and 2013:

Table 5.2



	March 31, 2014								March 31, 2013
	Allowance for Loan Losses			Reserve for Losses		Total Allowance for Losses			Allowance for Loan Losses			Reserve for Losses		Total Allowance for Losses
For the Three Months Ended:	(in thousands)
Beginning Balance	$	6,866		$	6,468	$	13,334		$	11,351		$	5,539	$	16,890
Provision for losses	573			101		674			430			746		1,176
Charge-offs	(29		)	—		(29		)	(3,814		)	—		(3,814		)
Ending Balance	$	7,410		$	6,569	$	13,979		$	7,967		$	6,285	$	14,252

During first quarter 2014, Farmer Mac recorded provisions to its allowance for loan losses of $0.6 million and provisions to its reserve for losses of $0.1 million. Farmer Mac also recorded $29,000 of charge-offs to its allowance for loan losses during first quarter 2014. During first quarter 2013, Farmer Mac recorded provisions to its allowance for loan losses of $0.4 million and provisions to its reserve for losses of $0.7 million. Farmer Mac also recorded charge-offs of $3.8 million to its allowance for loan losses during first quarter 2013, which included a $3.6 million charge-off related to one ethanol loan that transitioned to real estate owned ("REO") during first quarter 2013 and for which Farmer Mac had previously provided a specific allowance.

The following tables present the changes in the allowance for losses for the three months ended March 31, 2014 and 2013 by commodity type:

Table 5.3



	For the Three Months Ended March 31, 2014
	Crops		Permanent Plantings			Livestock		Part-time Farm			Ag. Storage and Processing (including ethanol facilities)		Other			Total
	(in thousands)
Beginning Balance	$	2,124	$	2,186		$	1,271	$	454		$	7,292	$	7		$	13,334
Provision for/(release of) losses	154		(55		)	116		39			423		(3		)	674
Charge-offs	—		—			—		(29		)	—		—			(29		)
Ending Balance	$	2,278	$	2,131		$	1,387	$	464		$	7,715	$	4		$	13,979



	For the Three Months Ended March 31, 2013
	Crops		Permanent Plantings			Livestock		Part-time Farm			Ag. Storage and Processing (including ethanol facilities)			Other		Total
	(in thousands)
Beginning Balance	$	2,589	$	2,316		$	1,534	$	784		$	9,661		$	6	$	16,890
Provision for/(release of) losses	28		199			53		(51		)	935			12		1,176
Charge-offs	—		(189		)	—		—			(3,625		)	—		(3,814		)
Ending Balance	$	2,617	$	2,326		$	1,587	$	733		$	6,971		$	18	$	14,252

The following tables present the unpaid principal balances of loans held and loans underlying LTSPCs and off-balance sheet Farmer Mac Guaranteed Securities and the related allowance for losses by impairment method and commodity type as of March 31, 2014 and December 31, 2013:

Table 5.4



	As of March 31, 2014
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing (including ethanol facilities)		Other		Total
	(in thousands)
Ending Balance:
Collectively evaluated for impairment:
On-balance sheet	$	1,395,277	$	306,566	$	359,633	$	38,605	$	41,717	$	1,325	$	2,143,123
Off-balance sheet	1,343,148		558,241		908,732		106,983		133,808		7,863		3,058,775
Total	$	2,738,425	$	864,807	$	1,268,365	$	145,588	$	175,525	$	9,188	$	5,201,898
Individually evaluated for impairment:
On-balance sheet	$	19,854	$	39,864	$	9,193	$	10,924	$	—	$	—	$	79,835
Off-balance sheet	3,316		3,375		4,269		1,282		—		—		12,242
Total	$	23,170	$	43,239	$	13,462	$	12,206	$	—	$	—	$	92,077
Total Farm & Ranch loans:
On-balance sheet	$	1,415,131	$	346,430	$	368,826	$	49,529	$	41,717	$	1,325	$	2,222,958
Off-balance sheet	1,346,464		561,616		913,001		108,265		133,808		7,863		3,071,017
Total	$	2,761,595	$	908,046	$	1,281,827	$	157,794	$	175,525	$	9,188	$	5,293,975
Allowance for Losses:
Collectively evaluated for impairment:
On-balance sheet	$	1,469	$	301	$	582	$	24	$	2,606	$	—	$	4,982
Off-balance sheet	363		155		626		48		5,109		4		6,305
Total	$	1,832	$	456	$	1,208	$	72	$	7,715	$	4	$	11,287
Individually evaluated for impairment:
On-balance sheet	$	361	$	1,608	$	100	$	359	$	—	$	—	$	2,428
Off-balance sheet	85		67		79		33		—		—		264
Total	$	446	$	1,675	$	179	$	392	$	—	$	—	$	2,692
Total Farm & Ranch loans:
On-balance sheet	$	1,830	$	1,909	$	682	$	383	$	2,606	$	—	$	7,410
Off-balance sheet	448		222		705		81		5,109		4		6,569
Total	$	2,278	$	2,131	$	1,387	$	464	$	7,715	$	4	$	13,979



	As of December 31, 2013
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing (including ethanol facilities)		Other		Total
	(in thousands)
Ending Balance:
Collectively evaluated for impairment:
On-balance sheet	$	1,363,861	$	295,037	$	319,665	$	39,940	$	32,636	$	359	$	2,051,498
Off-balance sheet	1,279,887		567,932		912,397		109,884		138,282		8,159		3,016,541
Total	$	2,643,748	$	862,969	$	1,232,062	$	149,824	$	170,918	$	8,518	$	5,068,039
Individually evaluated for impairment:
On-balance sheet	$	21,147	$	41,441	$	10,844	$	10,422	$	—	$	115	$	83,969
Off-balance sheet	1,962		3,414		3,199		2,497		—		—		11,072
Total	$	23,109	$	44,855	$	14,043	$	12,919	$	—	$	115	$	95,041
Total Farm & Ranch loans:
On-balance sheet	$	1,385,008	$	336,478	$	330,509	$	50,362	$	32,636	$	474	$	2,135,467
Off-balance sheet	1,281,849		571,346		915,596		112,381		138,282		8,159		3,027,613
Total	$	2,666,857	$	907,824	$	1,246,105	$	162,743	$	170,918	$	8,633	$	5,163,080
Allowance for Losses:
Collectively evaluated for impairment:
On-balance sheet	$	1,321	$	325	$	436	$	20	$	2,290	$	—	$	4,392
Off-balance sheet	397		159		642		42		5,002		4		6,246
Total	$	1,718	$	484	$	1,078	$	62	$	7,292	$	4	$	10,638
Individually evaluated for impairment:
On-balance sheet	$	362	$	1,641	$	140	$	331	$	—	$	—	$	2,474
Off-balance sheet	44		61		53		61		—		3		222
Total	$	406	$	1,702	$	193	$	392	$	—	$	3	$	2,696
Total Farm & Ranch loans:
On-balance sheet	$	1,683	$	1,966	$	576	$	351	$	2,290	$	—	$	6,866
Off-balance sheet	441		220		695		103		5,002		7		6,468
Total	$	2,124	$	2,186	$	1,271	$	454	$	7,292	$	7	$	13,334

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 March 31, 2014 and December 31, 2013:

Table 5.5



	As of March 31, 2014
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing (including ethanol facilities)		Other		Total
	(in thousands)
Impaired Loans:
With no specific allowance:
Recorded investment	$	6,989	$	9,913	$	6,733	$	1,442	$	—	$	—	$	25,077
Unpaid principal balance	6,875		10,010		6,914		1,458		—		—		25,257
With a specific allowance:
Recorded investment (1)	16,902		34,077		6,548		10,636		—		—		68,163
Unpaid principal balance	16,295		33,229		6,548		10,748		—		—		66,820
Associated allowance	446		1,675		179		392		—		—		2,692
Total:
Recorded investment	23,891		43,990		13,281		12,078		—		—		93,240
Unpaid principal balance	23,170		43,239		13,462		12,206		—		—		92,077
Associated allowance	446		1,675		179		392		—		—		2,692

Recorded investment of loans on nonaccrual status (2)	$	10,926	$	15,198	$	5,280	$	6,103	$	—	$	—	$	37,507


(1)	Impairment analysis was performed in the aggregate in consideration of similar risk characteristics of the assets and historical statistics on $60.7 million (65 percent) of impaired loans as of March 31, 2014, which resulted in a specific reserve of $1.3 million.


(2)	Includes $9.1 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, 2013
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing (including ethanol facilities)		Other		Total
	(in thousands)
Impaired Loans:
With no specific allowance:
Recorded investment	$	6,956	$	9,880	$	6,671	$	1,444	$	—	$	—	$	24,951
Unpaid principal balance	6,825		9,877		6,588		1,443		—		—		24,733
With a specific allowance:
Recorded investment (1)	16,697		36,146		7,600		11,554		—		119		72,116
Unpaid principal balance	16,284		34,978		7,455		11,476		—		115		70,308
Associated allowance	406		1,702		193		392		—		3		2,696
Total:
Recorded investment	23,653		46,026		14,271		12,998		—		119		97,067
Unpaid principal balance	23,109		44,855		14,043		12,919		—		115		95,041
Associated allowance	406		1,702		193		392		—		3		2,696

Recorded investment of loans on nonaccrual status (2)	$	10,812	$	15,237	$	5,344	$	5,835	$	—	$	—	$	37,228


(1)	Impairment analysis was performed in the aggregate in consideration of similar risk characteristics of the assets and historical statistics on $65.1 million (67 percent) of impaired loans as of December 31, 2012, which resulted in a specific reserve of $1.3 million.


(2)	Includes $9.6 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 three months ended March 31, 2014 and 2013:

Table 5.6



	For the Three Months Ended March 31, 2014
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing (including ethanol facilities)		Other		Total
	(in thousands)
Average recorded investment in impaired loans	$	23,772	$	45,008	$	13,776	$	12,538	$	—	$	60	$	95,154
Income recognized on impaired loans	170		194		76		122		—		—		562



	For the Three Months Ended March 31, 2013
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing (including ethanol facilities)		Other		Total
	(in thousands)
Average recorded investment in impaired loans	$	31,830	$	46,743	$	17,906	$	14,197	$	2,169	$	1,023	$	113,868
Income recognized on impaired loans	342		374		154		194		—		—		1,064

For the three months ended March 31, 2014, the recorded investment of loans determined to be troubled debt restructurings ("TDRs") was $0.6 million, both before and after restructuring. For the three months ended March 31, 2013, the recorded investment of loans determined to be TDRs was $0.2 million before restructuring and $0.3 million after restructuring. As of March 31, 2014, there were no TDRs identified during the previous 12 months that were in default under the modified terms. As of March 31, 2013, there were three TDRs identified during the previous 12 months that were in default under the modified terms, with a recorded investment of $1.3 million. The impact of TDRs on Farmer Mac's allowance for loan losses was immaterial in both first quarter 2014 and 2013.

During first quarter 2014, Farmer Mac purchased one defaulted loan having an unpaid principal balance of $0.4 million from a pool underlying an LTSPC. During first quarter 2013, Farmer Mac purchased two defaulted loans having an unpaid principal balance of $0.1 million from pools underlying Farm & Ranch Guaranteed Securities and LTSPCs.

The following tables present information related to Farmer Mac's acquisition of defaulted loans for the three months ended March 31, 2014 and 2013 and the outstanding balances and carrying amounts of all such loans as of March 31, 2014 and December 31, 2013:

Table 5.7



	For the Three Months Ended
	March 31, 2014		March 31, 2013
	(in thousands)
Unpaid principal balance at acquisition date:
Loans underlying LTSPCs	$	440	$	37
Loans underlying off-balance sheet Farmer Mac Guaranteed Securities	—		103
Total unpaid principal balance at acquisition date	440		140
Contractually required payments receivable	440		143
Impairment recognized subsequent to acquisition	52		386
Recovery/release of allowance for defaulted loans	2		50



	As of
	March 31, 2014		December 31, 2013
	(in thousands)
Outstanding balance	$	31,660	$	32,838
Carrying amount	29,435		29,613

Net credit losses and 90-day delinquencies as of and for the periods indicated for loans held and loans underlying off-balance sheet Farm & Ranch Guaranteed Securities and LTSPCs are presented in the table below. As of March 31, 2014, there were no delinquencies and no probable losses inherent in Farmer Mac's Rural Utilities loan portfolio and Farmer Mac has not experienced credit losses on any Rural Utilities loans.

Table 5.8



	90-Day Delinquencies (1)				Net Credit Losses
	As of				For the Three Months Ended
	March 31, 2014		December 31, 2013		March 31, 2014		March 31, 2013
	(in thousands)
On-balance sheet assets:
Farm & Ranch:
Loans	$	28,373	$	27,580	$	32	$	3,810
Total on-balance sheet	$	28,373	$	27,580	$	32	$	3,810
Off-balance sheet assets:
Farm & Ranch:
LTSPCs	$	1,064	$	716	$	—	$	—
Total off-balance sheet	$	1,064	$	716	$	—	$	—
Total	$	29,437	$	28,296	$	32	$	3,810


(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, restructured after delinquency, and in bankruptcy, excluding loans performing under either their original loan terms or a court-approved bankruptcy plan.

Of the $28.4 million and $27.6 million of on-balance sheet loans reported as 90-day delinquencies as of March 31, 2014 and December 31, 2013, respectively, $1.2 million, were loans subject to "removal-of-account" provisions.

Credit Quality Indicators

Farmer Mac analyzes credit risk related to loans held and loans underlying LTSPCs and off-balance sheet Farm & Ranch Guaranteed Securities based on internally assigned loan scores (i.e., risk ratings) that are derived by taking into consideration such factors as historical repayment performance, indicators of current financial condition, loan seasoning, loan size, and loan-to-value ratio. Loans are then classified into one of the following asset categories based on their underlying risk rating: acceptable; other assets especially mentioned; and substandard. Farmer Mac believes this analysis provides meaningful information regarding the credit risk profile of its Farm & Ranch portfolio as of each quarterly reporting period end date.

Farmer Mac also uses 90-day delinquency information to evaluate its credit risk exposure on these assets because historically it has been the best measure of borrower credit quality deterioration. Most of the loans held and underlying LTSPCs and off-balance sheet Farm & Ranch Guaranteed Securities have annual (January 1) or semi-annual (January 1 and July 1) payment dates and are supported by less frequent and less predictable revenue sources, such as the cash flows generated from the maturation of crops, sales of livestock, and government farm support programs. Taking into account the reduced frequency of payment due dates and revenue sources, Farmer Mac considers 90-day delinquency to be the most significant observation point when evaluating delinquency information.

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 March 31, 2014 and December 31, 2013:

Table 5.9



	As of March 31, 2014
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing (including ethanol facilities)		Other		Total
	(in thousands)
Credit risk profile by internally assigned grade (1)
On-balance sheet:
Acceptable	$	1,383,292	$	302,195	$	346,330	$	37,198	$	20,075	$	1,325	$	2,090,415
Special mention (2)	11,985		4,371		13,303		1,407		8,096		—		39,162
Substandard (3)	19,854		39,864		9,193		10,924		13,546		—		93,381
Total on-balance sheet	$	1,415,131	$	346,430	$	368,826	$	49,529	$	41,717	$	1,325	$	2,222,958
Off-Balance Sheet:
Acceptable	$	1,314,751	$	538,757	$	841,599	$	102,120	$	93,880	$	7,190	$	2,898,297
Special mention (2)	12,472		13,501		37,155		1,052		18,814		571		83,565
Substandard (3)	19,241		9,358		34,247		5,093		21,114		102		89,155
Total off-balance sheet	$	1,346,464	$	561,616	$	913,001	$	108,265	$	133,808	$	7,863	$	3,071,017
Total Ending Balance:
Acceptable	$	2,698,043	$	840,952	$	1,187,929	$	139,318	$	113,955	$	8,515	$	4,988,712
Special mention (2)	24,457		17,872		50,458		2,459		26,910		571		122,727
Substandard (3)	39,095		49,222		43,440		16,017		34,660		102		182,536
Total	$	2,761,595	$	908,046	$	1,281,827	$	157,794	$	175,525	$	9,188	$	5,293,975

Commodity analysis of past due loans (1)
On-balance sheet	$	8,529	$	11,415	$	5,251	$	3,178	$	—	$	—	$	28,373
Off-balance sheet	189		405		470		—		—		—		1,064
90-days or more past due	$	8,718	$	11,820	$	5,721	$	3,178	$	—	$	—	$	29,437


(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, 2013
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing (including ethanol facilities)		Other		Total
	(in thousands)
Credit risk profile by internally assigned grade (1)
On-balance sheet:
Acceptable	$	1,348,205	$	290,064	$	300,308	$	39,022	$	10,987	$	359	$	1,988,945
Special Mention (2)	15,656		4,973		19,357		918		6,267		—		47,171
Substandard (3)	21,147		41,441		10,844		10,422		15,382		115		99,351
Total on-balance sheet	$	1,385,008	$	336,478	$	330,509	$	50,362	$	32,636	$	474	$	2,135,467
Off-Balance Sheet
Acceptable	$	1,251,834	$	548,254	$	844,130	$	105,589	$	99,072	$	7,478	$	2,856,357
Special Mention (2)	10,977		15,621		36,555		917		11,011		578		75,659
Substandard (3)	19,038		7,471		34,911		5,875		28,199		103		95,597
Total off-balance sheet	$	1,281,849	$	571,346	$	915,596	$	112,381	$	138,282	$	8,159	$	3,027,613
Total Ending Balance:
Acceptable	$	2,600,039	$	838,318	$	1,144,438	$	144,611	$	110,059	$	7,837	$	4,845,302
Special Mention (2)	26,633		20,594		55,912		1,835		17,278		578		122,830
Substandard (3)	40,185		48,912		45,755		16,297		43,581		218		194,948
Total	$	2,666,857	$	907,824	$	1,246,105	$	162,743	$	170,918	$	8,633	$	5,163,080

Commodity analysis of past due loans (1)
On-balance sheet	$	8,036	$	11,841	$	4,462	$	3,122	$	—	$	119	$	27,580
Off-balance sheet	220		—		—		496		—		—		716
90-days or more past due	$	8,256	$	11,841	$	4,462	$	3,618	$	—	$	119	$	28,296


(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, as well as the range of original loan-to-value ratios, for all Farm & Ranch loans held and loans underlying off-balance sheet Farm & Ranch Guaranteed Securities and LTSPCs as of March 31, 2014 and December 31, 2013:

Table 5.10



	March 31, 2014		December 31, 2013
	(in thousands)
By commodity/collateral type:
Crops	$	2,761,595	$	2,666,857
Permanent plantings	908,046		907,824
Livestock	1,281,827		1,246,105
Part-time farm	157,794		162,743
Ag. Storage and Processing (including ethanol facilities)	175,525		170,918
Other	9,188		8,633
Total	$	5,293,975	$	5,163,080
By geographic region (1):
Northwest	$	549,031	$	524,034
Southwest	1,726,049		1,752,109
Mid-North	1,801,279		1,702,668
Mid-South	621,137		601,359
Northeast	224,277		231,731
Southeast	372,202		351,179
Total	$	5,293,975	$	5,163,080
By original loan-to-value ratio:
0.00% to 40.00%	$	1,453,294	$	1,375,758
40.01% to 50.00%	1,131,827		1,099,033
50.01% to 60.00%	1,462,348		1,431,562
60.01% to 70.00%	1,101,147		1,113,427
70.01% to 80.00%	107,144		110,828
80.01% to 90.00%	38,215		32,472
Total	$	5,293,975	$	5,163,080


(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).

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.