Finance
In New York, the federal 'conforming loan limit' is important because loans above this amount:
AAre prohibited by federal law
BAre classified as 'jumbo' loans and cannot be sold to Fannie Mae or Freddie Mac✓ Correct
CAutomatically require PMI
DMust be approved by the DOS
Explanation
The conforming loan limit is the maximum loan amount that Fannie Mae and Freddie Mac will purchase. Loans above this limit are 'jumbo loans,' which are not eligible for purchase by the GSEs and typically carry higher interest rates and stricter underwriting requirements.
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