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Mortgage Knowledgemedium20% of exam

Indigo receives conflicting instructions about GSE secondary-market requirements. Which instruction should control?

Correct Answer

A) Check whether the loan meets GSE conforming eligibility

GSE purchases depend on conforming eligibility, selling-guide standards, and loan-limit rules. The best answer is "Check whether the loan meets GSE conforming eligibility".

Answer Options
A
Check whether the loan meets GSE conforming eligibility
B
Apply a different loan-program rule without checking the file facts.
C
Ignore product, occupancy, LTV, or eligibility limits because the borrower prefers the loan.
D
Use the same treatment for all mortgage products without comparing program requirements.

Why This Is the Correct Answer

GSE purchases depend on conforming eligibility, selling-guide standards, and loan-limit rules. The best answer is "Check whether the loan meets GSE conforming eligibility".

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