Finance
In Tennessee, a 'conforming loan' is one that:
AConforms to FHA guidelines
BMeets Fannie Mae/Freddie Mac guidelines for purchase by the secondary market✓ Correct
CHas a fixed interest rate for the full term
DIs originated only by Tennessee-chartered banks
Explanation
A conforming loan meets the underwriting guidelines and loan limits set by Fannie Mae and Freddie Mac, making it eligible for purchase in the secondary mortgage market. This provides lenders with liquidity.
Related Tennessee Finance Questions
- A mortgage servicer in Tennessee is the entity that:
- A Tennessee borrower has a gross monthly income of $5,500. The lender uses a 28% front-end ratio. What is the maximum monthly housing payment allowed?
- Under a Tennessee deed of trust, if the borrower defaults, the lender may foreclose through:
- Predatory lending refers to:
- Tennessee law provides homeowners with a right of redemption after a residential foreclosure for a period of:
- A USDA Rural Development loan is designed to help:
- Amortization refers to the process of:
- Negative amortization occurs when:
Practice More Tennessee Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Tennessee Quiz →