FEDERAL CREDIT SUPPLEMENT iii INTRODUCTION The 2017 Federal Credit Supplement (Supplement) provides

Embed Size (px)

Text of FEDERAL CREDIT SUPPLEMENT iii INTRODUCTION The 2017 Federal Credit Supplement (Supplement) provides

  • FEDERAL CREDIT SUPPLEMENT BUDGET OF THE U.S. GOVERNMENT

    FISCAL YEAR 2017 OFFICE OF MANAGEMENT AND BUDGET

  • i

    TABLE OF CONTENTS

    Page

    Introduction .................................................................................................................................................................................................... iii

    Credit Program Supplementary Tables

    Table 1 - Direct Loans: Subsidy Rates, Obligations, and Average Loan Size ................................................................................................ 1

    Table 2 - Loan Guarantees: Subsidy Rates, Commitments, and Average Loan Size .................................................................................... 5

    Table 3 - Direct Loans: Assumptions Underlying the 2016 Subsidy Estimates ............................................................................................ 9

    Table 4 - Loan Guarantees: Assumptions Underlying the 2016 Subsidy Estimates .................................................................................. 13

    Table 5 - Direct Loans: Assumptions Underlying the 2017 Subsidy Estimates .......................................................................................... 17

    Table 6 - Loan Guarantees: Assumptions Underlying the 2017 Subsidy Estimates .................................................................................. 21

    Table 7 - Direct Loans: Subsidy Reestimates ................................................................................................................................................. 25

    Table 8 - Loan Guarantees: Subsidy Reestimates ......................................................................................................................................... 65

    Table 9 - Direct Loan Program Disbursement Rate Assumptions Underlying the 2017 Subsidy Estimates ........................................... 95

    Table 10 - Loan Guarantee Program Disbursement Rate Assumptions Underlying the 2017 Subsidy Estimates .................................. 99

  • iii

    INTRODUCTION

    The 2017 Federal Credit Supplement (Supplement) provides summary information about Federal direct loan and loan guarantee programs subject to the Federal Credit Reform Act (FCRA) of 1990, as amended by the Balanced Budget Act of 1997. The credit activities of programs exempt from FCRA do not appear in the Supplement, such as the credit activities of certain agencies providing deposit insurance.

    Tables 1 and 2 provide 2016 and 2017 subsidy rates, obligations, commitments, average loan size for direct loan and loan guarantee programs, and programs’ respective classification as discretionary or mandatory under the Balanced Budget and Emergency Deficit Control Act of 1985 (BBEDCA), as amended. Programs and risk categories with legislative proposals are displayed with one line showing program data under existing law and a second line showing program data under the legislative proposal. For more information on the BBEDCA and credit reform concepts, see Chapter 9, “Budget Concepts,” in the Analytical Perspectives volume of the 2017 Budget.

    Tables 3 and 4 provide information about the major components of 2016 subsidy rates, including the characteristics of direct loans and loan guarantees, respectively. Tables 5 and 6 provide the same information for direct loans and loan guarantees included in the President’s 2017 Budget request. The subsidy rate reflects the net present value cost for each dollar of credit assistance. The subsidy rate is comprised of four components: defaults, net of recoveries; interest; fees; and all other. Loan characteristics describe the terms of the loan agreement between the borrower and the agency or lender, as well as the estimated nominal default and recovery rates. Loan maturity and grace period data are expressed in years; all other characteristics are expressed as a percentage. The grace period data may be for repayment of principal and/or interest.

    Tables 7 and 8 provide information on the lifetime reestimates of direct loan and loan guarantee cohorts from 1992 through 2015 by agency, bureau, program, and risk category. The tables show the following for each cohort: the original subsidy rate at the point of obligation or commitment; the current reestimated subsidy rate; the change in subsidy rates due to interest and technical updates; dollar reestimates for the current year; net lifetime reestimate data; and lifetime disbursements through September 30, 2015. Some cohorts displayed in the 2017 Supplement have closed—there are no outstanding direct or guaranteed loans in the cohort and no further activity is expected. These cohorts are identified with a footnote and will not be displayed in future Federal Credit Supplement volumes.

    Tables 9 and 10 show the rates at which the 2017 cohorts of direct loans and guaranteed loans are expected to disburse.

    Electronic versions of the Supplement in both PDF and Excel formats are available at http://www.whitehouse.gov/omb/budget/Supplemental.

  • Table 1. DIRECT LOANS: SUBSIDY RATES, OBLIGATIONS, AND AVERAGE LOAN SIZE (Dollars in thousands)

    Subsidy rate (percent) Obligations Average loan size

    Subsidy rate (percent) Obligations Average loan size

    Department of Agriculture

    Farm Service Agency: Agricultural Credit Insurance Fund: Farm Ownership.............................................................................................. Discretionary -2.73 1,500,000 190 -1.62 1,500,000 179 Farm Operating............................................................................................... Discretionary 4.31 1,252,004 55 4.26 1,460,047 54 Emergency Disaster........................................................................................ Discretionary 3.64 54,683 97 5.59 22,576 99 Indian Tribe Land Acquisition.......................................................................... Discretionary -24.44 2,000 1,000 -21.54 20,000 6,667 Boll Weevil Eradication.................................................................................... Discretionary -0.81 60,000 3,483 -0.66 60,000 5,000 Indian Highly Fractionated Land...................................................................... Discretionary -4.58 10,000 1,000 25.50 10,000 985 Farm Storage Facility Loans: Farm Storage Facility Loans............................................................................ Mandatory -1.64 300,000 72 -1.30 300,000 72 Sugar Storage Facility Loans.......................................................................... Mandatory -1.59 20,000 4,000 -2.20 8,500 4,000

    Rural Housing Service: Multi-Family Housing Revitalization: Multi-Family Housing Relending Demo........................................................... Discretionary 31.26 2,042 1,040 ...... ...... ...... Multi-Family Housing Revitalization Seconds.................................................. Discretionary 54.12 19,398 706 57.01 18,769 720 Multi-Family Revitalization Zero...................................................................... Discretionary 52.68 21,000 747 51.29 15,247 762 Rural Community Facilities: Community Facility Loans............................................................................... Discretionary -8.04 2,200,000 2,616 -2.56 2,200,000 3,290 Rural Housing Insurance Fund: Section 502 Single-Family Housing................................................................. Discretionary 6.75 900,000 133 6.77 900,000 138 Section 515 Multi-Family Housing................................................................... Discretionary 29.63 28,397 1,111 29.60 33,074 1,132 Section 504 Housing Repair............................................................................ Discretionary 13.03 26,000 6 13.94 26,277 6 Section 514 Farm Labor Housing.................................................................... Discretionary 28.46 41,279 1,646 29.56 38,000 1,677 Section 524 Site Development........................................................................ Discretionary -1.53 5,000 499 2.22 5,000 509 Section 523 Self-Help Housing........................................................................ Discretionary -0.30 5,000 430 8.34 5,000 430 Single-Family Housing Credit Sales................................................................ Discretionary -4.87 2,000 85 -2.36 10,000 89

    Rural Business Cooperative Service: Rural Microenterprise Direct Loans................................................................. Discretionary 11.33 11,465 250 12.40 31,581 250 Intermediary Relending Program..................................................................... Mandatory 27.62 18,888 643 28.99 18,889 655 Rural Economic Development Loans.............................................................. Mandatory 13.39 37,386 500 14.23 89,000 500

    Rural Utilities Service: Rural Water and Waste Disposal Loans: Water and Waste Disposal Loans................................................................... Discretionary 2.61 1,364,483 1,615 4.34 1,036,866 1,614

    Agency, Bureau, Program and Risk Category BEA Category 2016 2017

    1

  • Table 1. DIRECT LOANS: SUBSIDY RATES, OBLIGATIONS, AND AVERAGE LOAN SIZE — Continued (Dollars in thousands)

    Subsidy rate (percent) Obligations Average loan size

    Subsidy rate (percent) Obligations Average loan size

    Agency, Bureau, Program and Risk Category BEA Category 2016 2017

    Rural