Loans that qualify as conforming loans have a lesser probability of being purchased by Fannie Mae and Freddie Mac to be packaged into a mortgage-backed security.

Question

Quizplus · Accepted Answer

This statement is false. Conforming loans are specifically designed to meet the guidelines set forth by Fannie Mae and Freddie Mac, making them more likely to be purchased and packaged into mortgage-backed securities by these government-sponsored entities.

Loans That Qualify as Conforming Loans Have a Lesser Probability