General Mortgage Knowledge · 20% of the SAFE exammedium
Correct answer: The loan cannot be sold to Fannie Mae or Freddie Mac; options include portfolio retention or private-label securitization
At $900,000, this loan exceeds the 2025 conforming limit of $806,500 for standard areas, making it a JUMBO or non-conforming loan that cannot be purchased by Fannie Mae or Freddie Mac. Options: (1) Portfolio retention — the lender keeps the loan on its own balance sheet, (2) Whole loan sale to a non-agency investor, (3) Private-label securitization — pooled into non-agency MBS. Ginnie Mae doesn't apply because Ginnie only guarantees MBS backed by government loans (FHA/VA/USDA), not conventional jumbos.
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