Created by Congress to promote an active secondary market for home mortgages, Fannie Mae and Freddie Mac purchase loans that meet specific underwriting standards such as loan size, documentation, and payment to income ratio. The loans that Fannie Mae and Freddie Mac are eligible to purchase are commonly referred to as:

Question

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Loans that meet specific underwriting standards and are eligible for purchase by Fannie Mae and Freddie Mac are referred to as conforming conventional loans.

Created by Congress to Promote an Active Secondary Market for Home