| Real Estate Terms -> What are Conforming Loans |
Conforming Loans
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What is a Conforming Loan? |
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FNMA and FHLMC make up what is know as the Secondary Market. Although they do not originate any Real Estate loans, by purchasing home loans originated by lenders, it frees up more money to be used by those lenders to originate more home loans. These loans must conform to FNMA or FHLMC standards which is why they are called Conforming Loans. |
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Disclaimer:
Do not rely on these definitions for any purpose other than providing an understanding of the concepts in our web site. More... |
