Farm Mortgage Marketing Corporation Act of 1986

Farm Mortgage Marketing Corporation Act of 1986 - Establishes the Farm Mortgage Marketing Corporation. Provides for a five-member Board of Directors.

Authorizes the Corporation, with specified limitations, to buy farm mortgages from qualified agricultural lenders and dispose of such mortgages through security issues.

Prohibits the Corporation from buying a mortgage unless: (1) the seller retains at least a ten-percent participation in the mortgage, or agrees to replace or repurchase the mortgage if the borrower defaults; and (2) at the time of purchase, the outstanding principal balance of such mortgage is less than 80 percent of the securing property's value, or the portion of the unpaid balance in excess of 80 percent is insured or guaranteed by a qualified insurer.

Provides for an initial Treasury capitalization of $200,000,000.

Sets forth Corporation authority.

Terminates the Corporation ten years after enactment of this Act. Prohibits the making of any mortgage purchase commitments later than seven years after enactment of this Act. Provides for Treasury administration of any remaining Corporation assets or obligations.

Authorizes appropriations beginning with FY 1987 for the purchase of Corporation stock.