A conforming mortgage is one for which the US Treasury will provide credit backing through the GSEs.

Question

Quizplus · Accepted Answer

A conforming mortgage meets the underwriting guidelines and loan limits set by Fannie Mae and Freddie Mac, which are government-sponsored enterprises (GSEs) that are backed by the US Treasury. This means that if a conforming mortgage defaults, it is more likely to be repurchased by the GSEs, which reduces risk for lenders and makes it easier for borrowers to obtain credit.

A Conforming Mortgage Is One for Which the US Treasury