Created by Congress to Promote an Active Secondary Market for Home

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 referred to as:

A) conventional loans
B) conforming conventional loans
C) nonconforming conventional loans
D) jumbo conventional loans