In a closing-readiness check, a disclosure specialist sees facts tied to GSE Guidelines LTV Limits. What should the file reflect?

Correct Answer

C) Use the FHFA conforming loan limit for the property and year

Why this is correct: The FHFA (Federal Housing Finance Agency) annually sets conforming loan limits for Fannie Mae and Freddie Mac, which are the maximum loan amounts they can acquire. These limits vary by property location (e.g., county) and year. In a closing-readiness check, when facts are tied to GSE (Government-Sponsored Enterprise) Guidelines on LTV (Loan-to-Value) Limits, the file must reflect the correct maximum loan amount, which is the FHFA conforming loan limit for that specific property and year. This ensures the loan qualifies for sale to the GSEs. Why the other choices are wrong: "Apply a different loan-program rule without checking the file facts" is wrong because it ignores the specific GSE guidelines relevant to the file. "Treat the GSE Guidelines LTV Limits review as complete because the file contains a related document-retention note" is wrong because a retention note does not confirm compliance with the actual LTV limits. "Use the same treatment for all mortgage products without comparing program requirements" is wrong because different mortgage products (e.g., conforming vs. jumbo) have distinct limit rules. Exam tip: Remember that FHFA limits are geographic and annual; always verify the current year's limit for the property's county to ensure GSE eligibility.