All of the following are true of maximum and minimum limits for conventional loans EXCEPT:
A) Fannie Mae/Freddie Mace set new limits each year for their conventional/conforming loans
B) if a prospective loan exceeds an institution's in-house limit, other lenders may join in a participation loan
C) setting minimum limits for loan amounts is a possible violation of the Fair Housing Act
D) all states set limits on the maximum amount for residential loans within the state

Question

Quizplus · Accepted Answer

States do not set limits on the maximum amount for residential loans; these limits are typically set by federal entities like Fannie Mae and Freddie Mac or by the lenders themselves based on various factors including market conditions and the borrower's creditworthiness.

All of the Following Are True of Maximum and Minimum