Finance
A 'conforming loan' in the U.S. is one that:
AConforms to FHA insurance requirements
BMeets Fannie Mae and Freddie Mac guidelines, including loan limits✓ Correct
CHas an interest rate below the prime rate
DIs originated by a federally chartered bank
Explanation
A conforming loan meets the guidelines established by Fannie Mae and Freddie Mac, including maximum loan limits (which are higher in high-cost areas like NYC), allowing the loan to be sold on the secondary market.
Related New York Finance Questions
- In New York, a 'conforming loan' is one that:
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- The Home Mortgage Disclosure Act (HMDA) requires lenders to:
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- NYC's Additional Mortgage Recording Tax is paid by:
- Which of the following best describes 'amortization'?
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