Banks are permitted to lend up to the full amount of their capital on secured real estate transactions that are guaranteed by the Federal National Mortgage Association.

Question

Quizplus · Accepted Answer

Banks are subject to regulatory lending limits and cannot lend up to the full amount of their capital on any single transaction, even if it is secured by real estate and guaranteed by the Federal National Mortgage Association (Fannie Mae).

Banks Are Permitted to Lend Up to the Full Amount