A lender wants to sell a jumbo loan that exceeds the conforming loan limit. Which GSE would be the most appropriate purchaser for this loan?
Correct Answer
D) None of these GSEs typically purchase jumbo loans
Fannie Mae and Freddie Mac are restricted by law to purchasing loans that meet conforming loan limits. Jumbo loans exceed these limits and are typically sold to private investors or held in portfolio by lenders, not purchased by GSEs.
Why This Is the Correct Answer
Fannie Mae and Freddie Mac are restricted by law to purchasing loans that meet conforming loan limits. Jumbo loans exceed these limits and are typically sold to private investors or held in portfolio by lenders, not purchased by GSEs.
More Mortgage Knowledge Questions
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